Algorithms in selection decisions: Effective, but unappreciated

Abstract

AbstractSelection decisions are often affected by irrelevant variables such as gender or race. People can discount this irrelevant information by adjusting their predictions accordingly, yet they fail to do so intuitively. In five online studies (N = 1077), participants were asked to make selection decisions in which the selection test was affected by irrelevant attributes. We examined whether in such decisions people are willing to be advised by algorithms, human advisors or prefer to decide without advice. We found that people fail to adjust for irrelevant information by themselves, and those who received advice from an algorithm or human advisor made better decisions. Interestingly, although most participants stated they prefer advice from human advisors, they tend to rely equally on algorithms in actual selection tasks. The sole exception is when they are forced to choose between an algorithm and a human advisor. In that case, they pick human advisors. We conclude that while algorithms may not be people's preferred source of advice in selection decisions, they are equally useful and can be implemented.