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Increasingly, algorithms make socially consequential decisions. This makes it crucial to determine when their decisions are discriminatory and how to prevent this outcome. While algorithmic decision-making has proven to be a challenge for traditional anti-discrimination law, there is an...
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setting, humans cannot verify the algorithm's quality. We, therefore, argue that algorithms exhibit traits of a credence good … intervention, we explain the way the algorithm functions. We find that while explanation helps participants recognize bias in the … algorithm, it remarkably decreases human decision-making performance. In the second treatment, we reveal the task's correct …
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We analyze the effects of better algorithmic demand forecasting on collusive profits. We show that the comparative statics crucially depend on the whether actions are observable. Thus, the optimal antitrust policy needs to take into account the institutional settings of the industry in question....
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The paper develops a version of Pontryagin's maximum principle for optimal control problems with monotonicity constraints on control variables. Whereas the literature handles such constraints by imposing an assumption of piecewise smoothness on the control variable and treating the slope of this...
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