Although algorithms make more accurate forecasts than humans in many applications, decision-makers often refuse to resort to their use. In an economic experiment, we examine whether the extent of this phenomenon known as algorithm aversion can be reduced by granting decision-makers the...

Within the framework of a laboratory experiment, we examine to what extent algorithm aversion acts as an obstacle in the establishment of robo advisors. The subjects had to complete diversification tasks. They could either do this themselves or they could delegate them to a robo advisor. The...