algorithmic decision-making is a crucial policy issue. Current legislation ensures fairness by barring algorithm designers from …, limit the benefits of a more accurate algorithm for a firm. As a result, profit maximizing firms could under-invest in …

names. We document that one explanation for this finding is that if an algorithm receives in real time less data about one … group, it will learn at different speeds. Since black names are less common, the algorithm learns about the quality of the … black names even if the algorithm judges the ad to be of low-quality. We extend this result by presenting evidence that ads …