Project information
Experimental analysis on betrayal aversion, punishment and algorithm aversion (BAP_ALG_AV)

Betrayal aversion has an impact on society's economic transactions. It is often considered one of the significant factors that can contribute to the failure of a transaction when there is uncertainty and asymmetry of information. While previous literature has provided evidence of the existence of betrayal aversion, no substantial research has managed to establish a relationship between punishment and betrayal aversion. The main research question is whether betrayal-averse subjects punish more harshly than those with lower levels of betrayal aversion.
The research proceeds with a reward allocation task in which participants are randomly assigned the role of manager. The subjects are randomly assigned to either the role of manager or the role of employee. The manager is required to allocate the reward between two employees. In parallel, the manager receives a recommendation from the algorithm, whose primary objective is to assist the manager in the allocation of rewards.