Cognitive Science & Policy Hub // Vol. 12

Behavioral Economics Lab

The Nudge & Bias Lab — an interactive, citable directory of cognitive biases, peer-reviewed journals, and empirical nudge findings.

AI & Trust

Algorithm Aversion: People Erroneously Avoid Algorithms After Seeing Them Err

Berkeley J. Dietvorst, Joseph P. Simmons, Cade Massey

Journal of Experimental Psychology: General · 2015

Abstract

This paper documents that people are significantly more likely to lose confidence in algorithms than in humans after seeing them make mistakes. Even when the algorithm's errors are smaller than the human's, seeing the algorithm err makes observers revert to human predictors, which perform worse on average.

Methodology

Across five studies, participants made forecasts about real-world outcomes (e.g., student performance) and received recommendations from either a human expert or an algorithm. Some participants saw the predictors err before choosing which advisor to rely on.

Findings

Seeing the algorithm make a mistake caused a steep decline in trust. Observers punished algorithmic errors much more severely than human errors, even when they were shown evidence that the algorithm outperformed the human.

Applied nudge

To combat algorithm aversion in choice architecture, do not present algorithms as infallible. Instead, frame them as collaborative assistants and manage error expectations transparently.

Citation

Dietvorst, B. J., Simmons, J. P., & Massey, C. (2015). Algorithm aversion: People erroneously avoid algorithms after seeing them err. Journal of Experimental Psychology: General, 144(1), 114-126.

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