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Ruled by robots: preference for algorithmic decision makers and perceptions of their choices

Author

Listed:
  • Marina Chugunova

    (Max Planck Institute for Innovation and Competition)

  • Wolfgang J. Luhan

    (University of Portsmouth, Richmond Building)

Abstract

As technology-assisted decision-making is becoming more widespread, it is important to understand how the algorithmic nature of the decision maker affects how decisions are perceived by those affected. We use an online experiment to study the preference for human or algorithmic decision makers in redistributive decisions. In particular, we consider whether an algorithmic decision maker will be preferred because of its impartiality. Contrary to previous findings, the majority of participants (over 60%) prefer the algorithm as a decision maker over a human—but this is not driven by concerns over biased decisions. However, despite this preference, the decisions made by humans are regarded more favorably. Subjective ratings of the decisions are mainly driven by participants’ own material interests and fairness ideals. Participants tolerate any explainable deviation between the actual decision and their ideals but react very strongly and negatively to redistribution decisions that are not consistent with any fairness principles.

Suggested Citation

  • Marina Chugunova & Wolfgang J. Luhan, 2025. "Ruled by robots: preference for algorithmic decision makers and perceptions of their choices," Public Choice, Springer, vol. 202(1), pages 1-24, January.
    • Handle: RePEc:kap:pubcho:v:202:y:2025:i:1:d:10.1007_s11127-024-01178-w
    DOI: 10.1007/s11127-024-01178-w
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    More about this item

    Keywords

    Delegation; Decision-making for others; Algorithm aversion; Redistribution; Fairness;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • D9 - Microeconomics - - Micro-Based Behavioral Economics
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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