Pith. sign in

REVIEW 1 cited by

Reputational Algorithm Aversion

Not yet reviewed by Pith; the record is open.

This paper has not been read by Pith yet. Machine review is queued; the pith claim, tier, and objections will appear here once it completes.

SPECIMEN: schema-true, not a live event

T0 review · schema-true

One-sentence machine reading of the paper's core claim.

pith:XXXXXXXX · record.json · timestamp

arxiv 2402.15418 v3 pith:TJGRAWE7 submitted 2024-02-23 econ.TH cs.AIcs.GTcs.HC

classification econ.THcs.AIcs.GTcs.HC
keywords algorithminformationworkersaversionfollowhigh-skilllow-skillmodel
verification ladder T0 review T1 audit T2 compute T3 formal

Signed reviews

No signed human review yet.

0 comments
read the original abstract

People are often reluctant to incorporate information produced by algorithms into their decisions, a phenomenon called ``algorithm aversion''. This paper shows how algorithm aversion arises when the choice to follow an algorithm conveys information about a human's ability. I develop a model in which workers make forecasts of an uncertain outcome based on their own private information and an algorithm's signal. Low-skill workers receive worse information than the algorithm and hence should always follow the algorithm's signal, while high-skill workers receive better information than the algorithm and should sometimes override it. However, due to reputational concerns, low-skill workers inefficiently override the algorithm to increase the likelihood they are perceived as high-skill. The model provides a fully rational microfoundation for algorithm aversion that aligns with the broad concern that AI systems will displace many types of workers.

Discussion (0). Continue with ORCID to comment.

Forward citations

Cited by 1 Pith paper

Reviewed papers in the Pith corpus that reference this work. Sorted by Pith novelty score. Full citation record

  1. AI Recommendations and Non-instrumental Image Concerns

    econ.GN 2025-04 conditional novelty 6.0 of 10

    Concerns about how one is perceived, even without any monetary or reputational stakes, make people reject accurate AI recommendations and lower their performance in an image-classification task.

Pith tools