Many economic transactions are preceded by some form of bargaining between the involved agents. Recent advances in Artificial Intelligence and Machine Learning allow automation to play an increasingly important role in these processes. Man and machine are expected to meet more frequently in the bargaining arena. For behavioral economists, this raises important questions: How does human-computer interaction (HCI) in bargaining affect behavior? What characteristics of automated agents (if any) induce different behaviors in individuals? Do bargaining outcomes differ when automated agents are involved compared to human-only interactions? The answers to these questions will depend on the nature of the bargaining process and the role of automated agents. This project aims to take initial steps toward improving our understanding of this topic.

Methodologically, we will use lab experiments informed by relevant theory. Our project also intends to develop automated agents to participate in the bargaining process using deep learning techniques, particularly generative modeling. We expect our results to inform the ongoing debate on the potential risks and befits from the increasing of AI applications and the ways it could (should?) be regulated to protect individuals without stifling innovation.

Contact Person:

Vassilis Vassiliades

Email: v.vassiliades@cyens.org.cy

MRG: CAIR

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