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FinTech
Article . 2024 . Peer-reviewed
License: CC BY
Data sources: Crossref
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FinTech
Article . 2024
Data sources: DOAJ
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Willingness to Use Algorithms Varies with Social Information on Weak vs. Strong Adoption: An Experimental Study on Algorithm Aversion

Authors: Jan René Judek;

Willingness to Use Algorithms Varies with Social Information on Weak vs. Strong Adoption: An Experimental Study on Algorithm Aversion

Abstract

The process of decision-making is increasingly supported by algorithms in a wide variety of contexts. However, the phenomenon of algorithm aversion conflicts with the development of the technological potential that algorithms bring with them. Economic agents tend to base their decisions on those of other economic agents. Therefore, this experimental approach examines the willingness to use an algorithm when making stock price forecasts when information about the prior adoption of an algorithm is provided. It is found that decision makers are more likely to use an algorithm if the majority of preceding economic agents have also used it. Willingness to use an algorithm varies with social information about prior weak or strong adoption. In addition, the affinity for technological interaction of the economic agents shows an effect on decision behavior.

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Keywords

algorithm aversion, behavioral finance, algorithmic decision-making, decision aids, Engineering economy, forecasting, TA177.4-185, herding behavior

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    influence
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Powered by OpenAIRE graph
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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
3
Top 10%
Average
Average
gold