Related papers: Motives for Delegating Financial Decisions
While artificial intelligence (AI) holds promise for addressing societal challenges, issues of exactly which tasks to automate and to what extent to do so remain understudied. We approach this problem of task delegability from 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,…
The transfer of tasks with sometimes far-reaching moral implications to autonomous systems raises a number of ethical questions. In addition to fundamental questions about the moral agency of these systems, behavioral issues arise. This…
In this research, we investigate the impact of delegating decision making to information technology (IT) on an important human decision bias - the sunk cost effect. To address our research question, we use a unique and very rich dataset…
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…
Decision-makers in high-stakes selection processes often face a fundamental choice: whether to make decisions themselves or to delegate authority to another entity whose incentives may only be partially aligned with their own. Such…
Delegation allows an agent to request that another agent completes a task. In many situations the task may be delegated onwards, and this process can repeat until it is eventually, successfully or unsuccessfully, performed. We consider…
Large language models are increasingly used in decision-making tasks that require them to process information from a variety of sources, including both human experts and other algorithmic agents. How do LLMs weigh the information provided…
We study elections where voters are faced with the challenge of expressing preferences over an extreme number of issues under consideration. This is largely motivated by emerging blockchain governance systems, which include voters with…
Algorithms are often used to produce decision-making rules that classify or evaluate individuals. When these individuals have incentives to be classified a certain way, they may behave strategically to influence their outcomes. We develop a…
We examine vote delegation when preferences of agents are private information. One group of agents (delegators) does not want to participate in voting and abstains under conventional voting or can delegate its votes to the other group…
We analyze and quantify, in a financial market with parameter uncertainty and for a Constant Relative Risk Aversion investor, the utility effects of two different boundedly rational (i.e., sub-optimal) investment strategies (namely, myopic…
When should we delegate decisions to AI systems? While the value alignment literature has developed techniques for shaping AI values, less attention has been paid to how to determine, under uncertainty, when imperfect alignment is good…
Large parts of professional human communication proceed in a request-reply fashion, whereby requests contain specifics of the information desired while replies can deliver the required information. However, time limitations often force…
This paper studies delegation in a model of discrete choice. In the delegation problem, an uninformed principal must consult an informed agent to make a decision. Both the agent and principal have preferences over the decided-upon action…
Delegation covers a broad class of problems in which a principal doesn't have the resources or expertise necessary to complete a task by themselves, so they delegate the task to an agent whose interests may not be aligned with their own.…
Myopic investors are locally rational decision-makers but globally irrational. Their suboptimal portfolios lag the market. As a consequence, other market participants are provided with profit opportunities. Not subterfuge but constrained…
Proponents of participatory democracy praise Liquid Democracy: decisions are taken by referendum, but voters delegate their votes freely. When better informed voters are present, delegation can increase the probability of a correct…
Attitudes toward risk underlie virtually every important economic decision an individual makes. In this experimental study, I examine how introducing a time delay into the execution of an investment plan influences individuals' risk…
We study investment strategy in different models of financial markets, where the investors cannot reach a perfect knowledge about available assets. The investor spends a certain effort to get information; this allows him to better choose…