Prediction, Judgment and Complexity
NBER Working Paper by Agrawal, Ajay and Gans, Joshua S. and Goldfarb, Avi: “We interpret recent developments in the field of artificial intelligence (AI) as improvements in prediction technology. In this paper, we explore the consequences of improved prediction in decision-making. To do so, we adapt existing models of decision-making under uncertainty to account for the process of determining payoffs.
