On the strategic interaction of AI advisors and human managers
The paper “Strategic Responses to Algorithmic Recommendations: Evidence from Hotel Pricing” by Daniel Garcia (U Vienna), Juha Tolvanen (U Tor Vergata Rome), and Alexander K. Wagner (PLUS) is now available in Management Science, a top journal for research in Business, Economics and Management. The paper theoretically and empirically studies the strategic interaction between an algorithmic AI advisor that recommends prices and a human manager who sets prices based on the algorithm’s price recommendations in the context of hotel room pricing.