Speaker:

Alex Imas, Roger L. and Rachel M. Goetz Professor of Behavioral Science, Economics, and Applied AI, University of Chicago, Booth School of Business

Title:

Agentic Interactions

Abstract:

Do human differences persist and scale when decisions are delegated to AI agents? In this talk we will explore an experimental marketplace in which individuals author instructions for buyer-and seller-side agents that negotiate on their behalf. We compare these AI agentic interactions to standard human-to-human negotiations in the same setting. First, contrary to predictions of more homogenous outcomes, agentic interactions lead to, if anything, greater dispersion in outcomes compared to human-mediated interactions. Second, crossing agents across counterparties reveals systematic dispersion in outcomes that tracks the identity and characteristics of the human creators; who designs the agent matters as much as, and often more than, shared information or code. Canonical behavioral frictions reappear in agentic form: personality traits shape agent behavior and selection on principal characteristics yields sorting. Despite AI agents not having access to the human principal's characteristics, demographics such as gender and personality variables have substantial explanatory power for outcomes, in ways that are sometimes reversed from human-to-human interactions. Moreover, we uncover significant variation in "machine fluency"-the ability to instruct an AI agent to effectively align with one's objective function-that is predicted by principals' individual types, suggesting a new source of heterogeneity and inequality in economic outcomes. These results indicate that the agentic economy inherits, transforms, and may even amplify, human heterogeneity. Finally, we highlight a new type of information asymmetry in principal-agent relationships and the potential for specification hazard, and discuss broader implications for welfare, inequality, and market power in economies increasingly transacted through machines shaped by human intent.

Speaker Bio:

Alex Imas studies behavioral economics with a focus on how people understand and mentally represent the choices they are facing. His research explores topics related to how people learn and make choices in settings with risk and uncertainty. He also studies the economics of artificial intelligence and discrimination. Alex’s work utilizes a variety of methods, including controlled laboratory experiments, field experiments, analysis of observational data and theoretical modeling.

Alex is the recipient of the 2023 Alfred P. Sloan Research Fellowship, the Review of Financial Studies Rising Scholar Award, the New Investigator Award from the Behavioral Science and Policy Association, the Hillel Einhorn New Investigator Award from the Society of Judgment and Decision Making, the Distinguished CESifo Affiliate Award, and the NSF Graduate Research Fellowship. He is the co-author, with Richard Thaler, of The Winner’s Curse: Behavioral Economics Anomalies, Then and Now. He is an Associate Editor at the Journal of the European Economic Association and on the editorial board of Psychological Science.

Location:

In person: Chambers Hall, 600 Foster Street, Lower Level
Remote option: https://northwestern.zoom.us/j/91389366431
PW: NICO26

About the Speaker Series:

Wednesdays@NICO is a vibrant weekly seminar series focusing broadly on the topics of complex systems, data science and network science. It brings together attendees ranging from graduate students to senior faculty who span all of the schools across Northwestern, from applied math to sociology to biology and every discipline in-between. Please visit: https://bit.ly/WedatNICO for information on future speakers.