20Mar
金山大学商学院研讨会日程, 研讨会
“When Will Workers Follow an Algorithm?: A Field Experiment with a Retail Business” by Dr. Kohei Kawaguchi
20 Mar 2019 | 16:30 - 18:00
Room 910, K.K. Leung Building, HKU
Speaker:
Dr. Kohei Kawaguchi
Assistant Professor
Department of Economics
The Hong Kong University of Science and Technology
Assistant Professor
Department of Economics
The Hong Kong University of Science and Technology
Abstract:
This paper studies if and under what conditions workers follow an algorithm, in the context of experimentation with product assortments for beverage vending machines. I develop an algorithm to automate the human task, and use simulation to show that it increases revenue. I then conduct a field experiment where I introduce the algorithm. However, it fails to increase revenue, because workers are not willing to follow it. They follow only when their opinions are integrated. Workers having more regret from the last business semester follow the algorithmic advice more, and less when their opinions are integrated.