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Peer effects in an automated world

Author

Listed:
  • Brice Corgnet

    (EM - EMLyon Business School)

  • Roberto Hernán-González

    (BSB - Burgundy School of Business (BSB) - Ecole Supérieure de Commerce de Dijon Bourgogne (ESC))

  • Ricardo Mateo

    (UNAV - Universidad de Navarra [Pamplona])

Abstract

Beyond its technological impact, automation also transforms the social context of the workplace by weakening peer effects. We study the often-neglected effects of this transformation on work production. Using experiments in which people complete a sequential task, we show that humans who work with algorithms underperform those who work with other humans, especially when workers are rewarded under team incentives. Our findings stress that firms should account for the weakening of peer effects due to automation when assessing the cost-efficiency of replacing humans with algorithms.

Suggested Citation

  • Brice Corgnet & Roberto Hernán-González & Ricardo Mateo, 2023. "Peer effects in an automated world," Post-Print hal-04376052, HAL.
    • Handle: RePEc:hal:journl:hal-04376052
    DOI: 10.1016/j.labeco.2023.102455
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    1. Mathieu Chevrier & Brice Corgnet & Eric Guerci & Julie Rosaz, 2024. "Algorithm Credulity: Human and Algorithmic Advice in Prediction Experiments," GREDEG Working Papers 2024-03, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France.

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    More about this item

    Keywords

    Incentives; Automation; Peer effects; Social pressure; Laboratory experiments;
    All these keywords.

    JEL classification:

    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • M52 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects

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