Algorithmic decision support is omnipresent in many managerial tasks, but human judgment often makes the final call. A lack of algorithm transparency is often stated as a barrier to successful human-machine collaboration. In this paper, we analyze the effects of algorithm transparency on the use...

Algorithmic decision support is omnipresent in many managerial tasks, but human judgment often makes the final call. A lack of algorithm transparency is often stated as a barrier to successful human-machine collaboration. In this paper, we analyze the effects of algorithm transparency on the use...

We compare how freshmen business students, graduate business students and experienced procurement managers perform on a simple inventory ordering task. We find that, qualitatively, managers exhibit ordering behavior similar to students, including biased ordering towards average demand....