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How do algorithmic decision aids introduced in business decision processes affect task performance? In a first experiment, we study effective collaboration. Faced with a decision, subjects alone have a success rate of 72%; Aided by a…
We analyze the delegation of pricing by participants, representing firms, to a collusive, self-learning algorithm in a repeated Bertrand experiment. In the baseline treatment, participants set prices themselves. In the other treatments,…
Human decision-making in real-life deviates significantly from the optimal decisions made by fully rational agents, primarily due to computational limitations or psychological biases. While existing studies in behavioral finance have…
The integration of artificial intelligence (AI) into human decision-making processes at the workplace presents both opportunities and challenges. One promising approach to leverage existing complementary capabilities is allowing humans to…
People supported by AI-powered decision support tools frequently overrely on the AI: they accept an AI's suggestion even when that suggestion is wrong. Adding explanations to the AI decisions does not appear to reduce the overreliance and…
Why do some investors delegate financial decisions to supposed experts? We report a laboratory experiment designed to disentangle four possible motives. Almost 600 investors drawn from the Prolific subject pool choose whether or not to…
Deception, which includes leading cyber-attackers astray with false information, has shown to be an effective method of thwarting cyber-attacks. There has been little investigation of the effect of probing action costs on adversarial…
Augmented analytics has transformed how business intelligence (BI) systems support managerial decision-making. This is especially true for users without technical backgrounds, who increasingly rely on automated insights rather than manual…
Cognitive biases exert a significant influence on human thinking and decision-making. In order to identify how they influence the occurrence of architectural technical debt, a series of semi-structured interviews with software architects…
A principal delegates decisions to a biased agent. Payoffs depend on a state that the principal cannot observe. Initially, the agent does not observe the state, but he can acquire information about it at a cost. We characterize the…
The use of Artificial Intelligence (AI) in public administration is expanding rapidly, moving from automating routine tasks to deploying generative and agentic systems that autonomously act on goals. While AI promises greater efficiency and…
Economic theory has provided an estimable intuition in understanding the perplexing ideologies in law, in the areas of economic law, tort law, contract law, procedural law and many others. Most legal systems require the parties involved in…
In recent years, the influence of cognitive effects and biases on users' thinking, behaving, and decision-making has garnered increasing attention in the field of interactive information retrieval. The decoy effect, one of the main…
Buyers (e.g., advertisers) often have limited financial and processing resources, and so their participation in auctions is throttled. Changes to auctions may affect bids or throttling and any change may affect what winners pay. This paper…
Technical Debt management decisions always imply a trade-off among outcomes at different points in time. In such intertemporal choices, distant outcomes are often valued lower than close ones, a phenomenon known as temporal discounting.…
If managers assume a normal or near-normal distribution of Information Technology (IT) project cost overruns, as is common, and cost overruns can be shown to follow a power-law distribution, managers may be unwittingly exposing their…
This paper considers the security investment problem over a network in which the resource owners aim to allocate their constrained security resources to heterogeneous targets strategically. Investing in each target makes it less vulnerable,…
Despite the growing prevalence of human-AI decision making, the human-AI team's decision performance often remains suboptimal, partially due to insufficient examination of humans' own reasoning. In this paper, we explore designing AI…
Cognitive biases, well-studied in humans, can also be observed in LLMs, affecting their reliability in real-world applications. This paper investigates the anchoring effect in LLM-driven price negotiations. To this end, we instructed seller…
The cost-benefit analysis formulates the holy trinity of objectives of project management - cost, schedule, and benefits. As our previous research has shown, ICT projects deviate from their initial cost estimate by more than 10% in 8 out of…