Measuring preferences for algorithms — How willing are people to cede control to algorithms?

2025/05/12 by Ivanova-Stenzel, Radosveta, Tolksdorf, Michel
#300 Sozialwissenschaften::330 Wirtschaft::330 Wirtschaft #algorithm aversion #delegation #experiment #preferences

paper · doi:10.14279/depositonce-23723

Abstract

We suggest a simple method to elicit individual preferences for algorithms. By altering the monetary incentives for ceding control to the algorithm, the menu-based approach allows for measuring in particular the degree of algorithm aversion. Using an experiment, we elicit preferences for algorithms in an environment with measurable performance accuracy under two conditions — the absence and the presence of information about the algorithm’s performance. Providing such information raises subjects’ willingness to rely on algorithms when ceding control to the algorithm is more costly than trusting in their own assessment. However, algorithms are still underutilized.

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