Due to a growing number of initiatives and regulations, predictions of modern Artificial Intelligence (AI) systems increasingly come with explanations about why they behave the way they do. In this paper, we explore the impact of feature-based explanations on users' information processing. We...

With free delivery of products virtually being a standard in E-commerce, product returns pose a major challenge for online retailers and society. For retailers, product returns involve significant transportation, labor, disposal, and administrative costs. From a societal perspective, product...

In current discussions on large language models (LLMs) such as GPT, understanding their ability to emulate facets of human intelligence stands central. Using behavioral economic paradigms and structural models, we investigate GPT's cooperativeness in human interactions and assess its rational...

This paper explores the interplay of feature-based explainable AI (XAI) techniques, information processing, and human beliefs. Using a novel experimental protocol, we study the impact of providing users with explanations about how an AI system weighs inputted information to produce individual...

Using experimental data from a comprehensive field study, we explore the causal eects of algorithmic discrimination on economic eciency and social welfare. We harness economic, game-theoretic, and state-of-the-art machine learning concepts allowing us to overcome the central challenge of missing...

We study, theoretically and empirically, the effects of incentives on the self-selection and coordination of motivated agents to produce a social good. Agents join teams where they allocate effort to either generate individual monetary rewards (selfish effort) or contribute to the production of...

We show that disclosing machine predictions to affected parties can trigger self-fulfilling prophecies. In an investment game, we experimentally vary investors' and recipients' access to a machine prediction about recipients' likelihood to pay back an investment. Recipients who privately learn...

Using a novel experimental design, I test how the exposure to information about a group's relative performance causally a↵ects the members' level of identification and thereby their propensity to harm aliates of comparison groups. I find that both, being informed about a high and poor relative...

With free delivery of products virtually being a standard in E-commerce, product returns pose a major challenge for online retailers and society. For retailers, product returns involve significant transportation, labor, disposal, and administrative costs. From a societal perspective, product...

How does group identity affect belief formation? To address this question, we conduct a series of online experiments with a representative sample of individuals in the US. Using the setting of the 2020 US presidential election, we find evidence of intergroup preference across three distinct...