{"pk":21637,"title":"Decision-Making Paradoxes in Humans vs Machines: The case of the Allais and Ellsberg Paradoxes","subtitle":null,"abstract":"Human decision-making is filled with a variety of paradoxes demonstrating deviations from rationality principles. Do state-of-the-art artificial intelligence (AI) models also manifest these paradoxes when making decisions? As a case study, in this work we investigate whether GPT-4, a recently released state-of-the-art language model, would show two well-known paradoxes in human decision-making: the Allais paradox and the Ellsberg paradox. We demonstrate that GPT-4 succeeds in the two variants of the Allais paradox (the common-consequence effect and the common-ratio effect) but fails in the case of the Ellsberg paradox. We also show that providing GPT-4 with high-level normative principles allows it to succeed in the Ellsberg paradox, thus elevating GPT-4's decision-making rationality. We discuss the implications of our work for AI rationality enhancement and AI-assisted decision-making.","language":"eng","license":{"name":"","short_name":"","text":null,"url":""},"keywords":[{"word":"Psychology; Decision making"}],"section":"Papers with Poster Presentation","is_remote":true,"remote_url":"https://escholarship.org/uc/item/36b5k68w","frozenauthors":[{"first_name":"Ardavan S.","middle_name":"","last_name":"Nobandegani","name_suffix":"","institution":"McGill University","department":""},{"first_name":"Irina","middle_name":"","last_name":"Rish","name_suffix":"","institution":"Mila - Quebec AI Institute","department":""},{"first_name":"Thomas","middle_name":"","last_name":"Shultz","name_suffix":"","institution":"McGill University","department":""}],"date_submitted":null,"date_accepted":null,"date_published":"2024-01-01T18:00:00Z","render_galley":null,"galleys":[{"label":"PDF","type":"pdf","path":"https://journalpub.escholarship.org/cognitivesciencesociety/article/21637/galley/11236/download/"},{"label":"PDF","type":"pdf","path":"https://journalpub.escholarship.org/cognitivesciencesociety/article/21637/galley/14545/download/"},{"label":"PDF","type":"pdf","path":"https://journalpub.escholarship.org/cognitivesciencesociety/article/21637/galley/22018/download/"}]}