Author
Listed:
- Cass R. Sunstein
(Robert Walmsley University, Harvard University, Harvard Law School)
- Lucia A. Reisch
(El-Erian Professor for Behavioural Economics and Policy El-Erian Institute for Behavioural Economics and Policy Cambridge Judge Business School University of Cambridge)
Abstract
A great deal of work in behavioral science emphasizes that statistical predictions often outperform clinical predictions. Formulas tend to do better than people do, and algorithms tend to outperform human beings, including experts. One reason is that algorithms do not show inconsistency or “noise”; another reason is that they are often free from cognitive biases. These points have broad implications for risk assessment in domains that include health, safety, and the environment. Still, there is evidence that many people distrust algorithms and would prefer a human decisionmaker. We offer a set of preliminary findings about how a tested population chooses between a human being and an algorithm. In a simple choice between the two across diverse settings, people are about equally divided in their preference. We also find that that a significant number of people are willing to shift in favor of algorithms when they learn something about them, but also that a significant number of people are unmoved by the relevant information. These findings have implications for current findings about “algorithm aversion” and “algorithm appreciation.”
Suggested Citation
Cass R. Sunstein & Lucia A. Reisch, 2025.
"In Praise of Computation,"
Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 88(10), pages 2707-2727, October.
Handle:
RePEc:kap:enreec:v:88:y:2025:i:10:d:10.1007_s10640-025-00958-2
DOI: 10.1007/s10640-025-00958-2
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