Predictive AI is increasingly used to guide decisions on agents. I show that even a bias-neutral predictive AI can … potentially amplify exogenous (human) bias in settings where the predictive AI represents a cost-adjusted precision gain to … belief updating, expected victims of bias become less likely to be saved by randomness under more precise predictions. An …

I present a statistical discrimination model of the labor market in which employers endogenously learn about the … beliefs. Discrimination can arise and persist without productivity differentials or prior employer biases, with market … apparent prejudice as the result of "incorrect" statistical discrimination. The model also generates additional predictions …

We introduce a model of two-sided statistical discrimination in which worker and firm beliefs are complementary. Firms … both empirical analysis designed to detect discrimination and policy meant to alleviate it. Affirmative action is much less … effective than in traditional statistical discrimination models. More generally, we demonstrate the futility of one …

We introduce a model of two-sided statistical discrimination in which worker and firm beliefs are complementary. Firms … both empirical analysis designed to detect discrimination and policy meant to alleviate it. Affirmative action is much less … effective than in traditional statistical discrimination models. More generally, we demonstrate the futility of one …