http://citywireselector.com/news/what-algorithm-aversion-means-for-fund-selectors/a1082916?utm_source=Daily+AR&utm_campaign=fe1455f2b1-RSS_EMAIL_CAMPAIGN&utm_medium=email&utm_term=0_c08a59015d-fe1455f2b1-140327645

"The authors found that, while seeing a model make relatively small mistakes consistently decreased the participants’ confidence in the model, seeing a human make relatively large mistakes did not consistently decrease their confidence in the human.

In general, people are more likely to abandon an algorithm than a human judge for making the same mistake. We tolerate human errors at a higher rate compared to machine errors.

Scientific evidence on the superiority of algorithms and models to make forecasts in many aspects of life is plentiful and it goes back a long way (Meehl, 1954; Dawes, 1979; Silver, 2012)). However, people prefer humans over algorithms.

With our biases, we are precluding superior approaches in tackling many tasks, not just investing. This is a problem for society."

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