Chapter 8. Do we like robot? Consumers' attitude towards the algorithm

Algorithms have long been touted as a cognitive cure for the limitations of human judgement and decision making and recently, we have witnessed an increasing proportion of both high_stakes and mundane decisions being augmented by algorithmic aids. Yet, in spite of the growing ubiquity of algorithmically augmented decision making, the attitude of individuals towards these same algorithms is not fully understood and evidences exist of both algorithm aversion and appreciation. Amid a growing body of literature, this paper sets out to systematically review the existing research that addresses the central question: why do people misuse (i.e., under- or over-utilize) algorithmically generated insights in augmented decision making? With the increasing importance of Fintech, a special focus, based upon the results of experimental studies, is dedicated to the attitude of investors towards robo-advise.