Citation

Dietvorst BJ, Bharti S. Psychol. Sci. 2020; ePub(ePub): ePub.

Copyright

(Copyright © 2020, Association for Psychological Science, Publisher John Wiley and Sons)

DOI

10.1177/0956797620948841

PMID

32916083

Abstract

Will people use self-driving cars, virtual doctors, and other algorithmic decision-makers if they outperform humans? The answer depends on the uncertainty inherent in the decision domain. We propose that people have diminishing sensitivity to forecasting error and that this preference results in people favoring riskier (and often worse-performing) decision-making methods, such as human judgment, in inherently uncertain domains. In nine studies (N = 4,820), we found that (a) people have diminishing sensitivity to each marginal unit of error that a forecast produces, (b) people are less likely to use the best possible algorithm in decision domains that are more unpredictable, (c) people choose between decision-making methods on the basis of the perceived likelihood of those methods producing a near-perfect answer, and (d) people prefer methods that exhibit higher variance in performance (all else being equal). To the extent that investing, medical decision-making, and other domains are inherently uncertain, people may be unwilling to use even the best possible algorithm in those domains.

Language: en

Keywords

decision-making; open data; open materials; preregistered; algorithm aversion; forecasting; judgment; variance