Human and Algorithmic Cooperation: Parameters Matter!

Category: Management & Microeconomics Brown Bag Seminar
When: 17 October 2024
, 12:30
 - 13:30
Where: RuW 4.201
Speaker: Matthias Blonski

Title: Human and Algorithmic Cooperation: Parameters Matter! (w/ Steffen Eibelshäuser, Hendrik Hegemann, Victor Klockmann and Alicia von Schenk)

Abstract: Under which conditions do humans cooperate with machines? We address this question within the context of the infinitely repeated discounted Prisoner’s Dilemma. Recent theory has identified a critical parameter threshold where human behavior changes substantially from lower to higher cooperation rates. We analyze in controlled lab experiments how replacing a human with a sophisticated learning algorithm affects cooperation rates. We find that the theoretical threshold becomes sharper and more predictive once humans are replaced by profit-maximizing AI algorithms as the gap between cooperation rates above and below the threshold gets even more pronounced.

Top