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Peer effects in an automated world

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  • Corgnet, Brice
  • Hernán-González, Roberto
  • Mateo, Ricardo

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

  • Corgnet, Brice & Hernán-González, Roberto & Mateo, Ricardo, 2023. "Peer effects in an automated world," Labour Economics, Elsevier, vol. 85(C).
    • Handle: RePEc:eee:labeco:v:85:y:2023:i:c:s0927537123001306
    DOI: 10.1016/j.labeco.2023.102455
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    Cited by:

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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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