Cited by 1,230Decision-Making and Behavioral EconomicsForecasting Techniques and ApplicationsHuman-Automation Interaction and Safety

Overcoming Algorithm Aversion: People Will Use Imperfect Algorithms If They Can (Even Slightly) Modify Them

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Dietvorst, Berkeley J., Simmons, Joseph P., Massey, Cade·2018·Management Science

Abstract

Although evidence-based algorithms consistently outperform human forecasters, people often fail to use them after learning that they are imperfect, a phenomenon known as algorithm aversion. In this paper, we present three studies investigating how to reduce algorithm aversion. In incentivized forecasting tasks, participants chose between using their own forecasts or those of an algorithm that was built by experts. Participants were considerably more likely to choose to use an imperfect algorithm when they could modify its forecasts, and they performed better as a result. Notably, the preference for modifiable algorithms held even when participants were severely restricted in the modifications they could make (Studies 1–3). In fact, our results suggest that participants’ preference for modifiable algorithms was indicative of a desire for some control over the forecasting outcome, and not for a desire for greater control over the forecasting outcome, as participants’ preference for modifiable algorithms was relatively insensitive to the magnitude of the modifications they were able to make (Study 2). Additionally, we found that giving participants the freedom to modify an imperfect algorithm made them feel more satisfied with the forecasting process, more likely to believe that the algorithm was superior, and more likely to choose to use an algorithm to make subsequent forecasts (Study 3). This research suggests that one can reduce algorithm aversion by giving people some contr…

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Crossref · 10.1287/mnsc.2016.2643

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27 of 27 references verified0 citation errors · 0 not checkable

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  • Allowing users to adjust the algorithm can reduce resistance.

    “At the same time, some design choices can reduce resistance -for example, allowing users to adjust the algorithm (Dietvorst et al., 2018)”
  • Being empowered to change or intervene in an algorithmic decision can overcome the aversion reaction sometimes developed by algorithm users.

    “A lab study by Dietvorst, Simmons, and Massey (2016) showed that being empowered to change or intervene in an algorithmic decision can overcome the aversion reaction sometimes developed by algorithm' users.”

    From Algorithms as work designers: How algorithmic management influences the design of jobs (2022) · cites this paper as Dietvorst, Simmons, and Massey, 2016

  • Even a very small amount of power of intervention or modification can significantly modify one's reaction and performance when working with the algorithm.

    “Their results further indicate that even a very small amount of power of intervention or modification can significantly modify one's reaction and performance when working with the algorithm.”

    From Algorithms as work designers: How algorithmic management influences the design of jobs (2022) · cites this paper as Dietvorst, Simmons, and Massey, 2016

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Authors
Dietvorst, B. J., Simmons, J. P., & Massey, C.
Affiliations
  • University of Chicago (US)
  • University of Pennsylvania (US)
Venue
Management Science
Published
2018-03
Volume
64
Issue
3
Pages
1155-1170
ISSN
  • 0025-1909 (ISSN-L)
  • 1526-5501
OpenAlex
W3121705224
Cited by
1,230
References
27
Citations by year
2026: 260 · 2025: 218 · 2024: 203 · 2023: 179 · 2022: 138 · 2021: 104 · 2020: 58 · 2019: 46 · 2018: 16 · 2017: 6 · 2016: 2
FWCI
20.17
Type
journal article
Language
en
Open access
Locations
  • Management Science (publishedVersion)
  • SSRN Electronic Journal (acceptedVersion)
  • ScholarlyCommons (University of Pennsylvania) (submittedVersion)
Topics
  • Social Sciences › Decision Sciences › General Decision Sciences › Decision-Making and Behavioral Economics
  • Social Sciences › Decision Sciences › Management Science and Operations Research › Forecasting Techniques and Applications
  • Social Sciences › Psychology › Social Psychology › Human-Automation Interaction and Safety
Keywords
algorithm aversion, forecasting, trust in algorithms

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