This paper investigates pricing in laboratory markets when human players interact with an algorithm. We compare the … degree of competition when exclusively humans interact to the case of one firm delegating its decisions to an algorithm, an n …-player generalization of tit-for-tat. We further vary whether participants know about the presence of the algorithm. When one of three firms …

We run an online experiment to study the origins of algorithm aversion. Participants are either in the role of workers … in the role of a manager or by an algorithm. In a second set of experiments, managers choose whether they want to … delegate their hiring decisions to the algorithm. In the baseline treatments, we observe that workers choose the manager more …