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      Brave new world: service robots in the frontline

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          An Examination of the Nature of Trust in Buyer-Seller Relationships

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            Artificial Intelligence in Service

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              Algorithm aversion: people erroneously avoid algorithms after seeing them err.

              Research shows that evidence-based algorithms more accurately predict the future than do human forecasters. Yet when forecasters are deciding whether to use a human forecaster or a statistical algorithm, they often choose the human forecaster. This phenomenon, which we call algorithm aversion, is costly, and it is important to understand its causes. We show that people are especially averse to algorithmic forecasters after seeing them perform, even when they see them outperform a human forecaster. This is because people more quickly lose confidence in algorithmic than human forecasters after seeing them make the same mistake. In 5 studies, participants either saw an algorithm make forecasts, a human make forecasts, both, or neither. They then decided whether to tie their incentives to the future predictions of the algorithm or the human. Participants who saw the algorithm perform were less confident in it, and less likely to choose it over an inferior human forecaster. This was true even among those who saw the algorithm outperform the human.
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                Author and article information

                Journal
                Journal of Service Management
                Journal of Service Management
                Emerald
                1757-5818
                October 15 2018
                October 15 2018
                : 29
                : 5
                : 907-931
                Affiliations
                [1 ]Department of Marketing, National University of Singapore, Singapore
                [2 ]Department of Marketing, University of New South Wales, Sydney, Australia
                [3 ]Department of Marketing, University of Massachusetts, Boston, Massachusetts, USA
                [4 ]Centre for Service Management, Loughborough University, Loughborough, UK
                [5 ]Research School of Management, Australian National University, Canberra, Australia
                [6 ]School of Business and Economics, Rheinisch-Westfälische Technische Hochschule Aachen University, Aachen, Germany
                [7 ]Business School, The University of Queensland, Brisbane, Australia
                Article
                10.1108/JOSM-04-2018-0119
                a69b22bd-e34a-4659-af87-39cb9f09fe72
                © 2018

                http://www.emeraldinsight.com/page/tdm

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