Related papers: Motives for Delegating Financial Decisions
Consider a dynamic decision-making scenario where at every stage the investor has to choose between investing in one of two projects or gathering more information. At each stage, the investor may seek counsel from one of several…
Professionals' decisions are the focus of every field. For example, politicians' decisions will influence the future of the country, and stock analysts' decisions will impact the market. Recognizing the influential role of professionals'…
Human reasoning involves different strategies, each suited to specific problems. Prior work shows that large language model (LLMs) tend to favor a single reasoning strategy, potentially limiting their effectiveness in diverse reasoning…
Decisions in organizations are about evaluating alternatives and choosing the one that would best serve organizational goals. To the extent that the evaluation of alternatives could be formulated as a predictive task with appropriate…
Technical debt happens when teams take shortcuts on software development to gain short-term benefits at the cost of making future changes more expensive. Previous results show that there is a misalignment between the prioritization done by…
Decision makers sometimes cannot observe the consequences of their actions ex-post. This paper axiomatically characterizes a decision model in which the decision maker cares about verifying that a good consequence has been achieved.…
We study a problem where a group of agents has to decide how some fixed value should be shared among them. We are interested in settings where the share that each agent receives is based on how that agent is evaluated by other members of…
We conducted an experiment where participants played a perfect-information game against a computer, which was programmed to deviate often from its backward induction strategy right at the beginning of the game. Participants knew that in…
Investors usually resort to financial advisors to improve their investment process until the point of complete delegation on investment decisions. Surely, financial advice is potentially a correcting factor in investment decisions but, in…
I study how organizations assign tasks to identify the best candidate to promote among a pool of workers. Task allocation and workers' motivation interact through the organization's promotion decisions. The organization designs the workers'…
Institutions and investors face the constant challenge of making accurate decisions and predictions regarding how best they should distribute their endowments. The problem of achieving an optimal outcome at minimal cost has been extensively…
Large Language Models (LLMs) are seemingly infiltrating every domain, and the legal context is no exception. In this paper, we present the results of three experiments (total N = 288) that investigated lay people's willingness to act upon,…
Recent work has proposed artificial intelligence (AI) models that can learn to decide whether to make a prediction for an instance of a task or to delegate it to a human by considering both parties' capabilities. In simulations with…
Decision-makers are often experts of their domain and take actions based on their domain knowledge. Doctors, for instance, may prescribe treatments by predicting the likely outcome of each available treatment. Actions of an expert thus…
A designer relies on an experimenter to provide information to a decision maker, but the experimenter has incentives to persuade rather than merely transmit information. Anticipating this motive, the designer can restrict the set of…
We study delegated Bayesian persuasion: a principal incentivizes an intermediary to design information via outcome-contingent transfers, while the intermediary privately chooses the experiment subject to convex costs. We characterize…
This online-vignette study investigates the impact of certification and verification as measures for quality assurance of AI on trust and use of a robo-advisor. Confronting 520 participants with an imaginary situation where they were using…
The introduction of ChatGPT has fuelled a public debate on the use of generative AI (large language models; LLMs), including its use by researchers. In the current work, we test whether delegating parts of the research process to LLMs leads…
This paper centers around a simple yet crucial question for everyday users: How should one choose their delegated validators within proof-of-stake (PoS) protocols, particularly in the context of Ethereum 2.0? This has been a long-overlooked…
We show that in delegation problems, a principal benefits from belief misalignment vis-\`a-vis an agent when the latter can flexibly acquire costly information. The agent optimally succumbs to confirmatory learning, leading him to favor the…