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Complementarities between algorithmic and human decision-making: The case of antibiotic prescribing

Author

Listed:
  • Michael Allan Ribers

    (University of Copenhagen)

  • Hannes Ullrich

    (University of Copenhagen
    DIW Berlin, Department Firms and Markets)

Abstract

Artificial Intelligence has the potential to improve human decisions in complex environments, but its effectiveness can remain limited if humans hold context-specific private information. Using the empirical example of antibiotic prescribing for urinary tract infections, we show that full automation of prescribing fails to improve on physician decisions. Instead, optimally delegating a share of decisions to physicians, where they possess private diagnostic information, effectively utilizes the complementarity between algorithmic and human decisions. Combining physician and algorithmic decisions can achieve a reduction in inefficient overprescribing of antibiotics by 20.3 percent.

Suggested Citation

  • Michael Allan Ribers & Hannes Ullrich, 2024. "Complementarities between algorithmic and human decision-making: The case of antibiotic prescribing," Quantitative Marketing and Economics (QME), Springer, vol. 22(4), pages 445-483, December.
    • Handle: RePEc:kap:qmktec:v:22:y:2024:i:4:d:10.1007_s11129-024-09284-1
    DOI: 10.1007/s11129-024-09284-1
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    More about this item

    Keywords

    Human-machine complementarity; Machine learning; Antibiotic resistance; Antibiotic prescribing;
    All these keywords.

    JEL classification:

    • C53 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Forecasting and Prediction Models; Simulation Methods
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • I19 - Health, Education, and Welfare - - Health - - - Other
    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
    • M15 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - IT Management

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