Séminaire GREDEG : Brice CORGNET (GATE CNRS)

This talk will explore how algorithms can be deployed to make critical resource allocation decisions and examine their consequences. Specifically, we will focus on the use of algorithms to reduce negative reactions to critical resource allocation decisions, a phenomenon we term the “algo taming effect.” Drawing on two experimental studies, one examining organizational dismissals and the other focusing on bargaining, we demonstrate that decisions made by algorithms elicit less negative behavioral reactions compared to those made by human decision-makers. Our analysis identifies reduced spite as the key mechanism driving this effect. Additionally, algorithmic allocators enhance efficiency by facilitating the successful completion of transactions. These findings suggest that leveraging algorithms in critical decisions could improve outcomes across diverse resource allocation and negotiation settings. We will conclude by discussing the limitations of the “algo taming effect” and the importance of keeping humans in the loop.

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