People picked an AI advisor over an AI negotiator, even though only letting the AI negotiate made everyone better off.
Why did players prefer the Advisor even though only Delegate raised total welfare?
This explores a puzzle from an AI-assisted negotiation experiment: people chose an AI that only gave them advice far more often than an AI that negotiated for them, yet only the negotiating AI made the group as a whole better off.
This explores why people in a negotiation game kept picking an AI that only advised them over one that acted for them, even though only the acting AI raised the group's combined gains. The basic numbers come from a 243-person experiment. Players chose the Advisor 44% of the time and the autonomous Delegate only 19% of the time. Groups ended up with significantly more total surplus only when the Delegate was available. The authors' explanation is that when a human stays in the loop, they tend to screen out good AI proposals they would have done better to accept Do people prefer AI advisors even when delegation works better?. In other words, the control people wanted was the very thing that cancelled out the AI's benefit.
A second finding makes the puzzle sharper. In games where the Delegate was available, the players who refused it earned more on average than the players who used it Do AI delegates exploit their manual-playing counterparts?. The Delegate did not exploit anyone. It raised the quality of offers across the whole table, and the people playing by hand got the most out of that better pool. So the gains from delegating spread to everyone, while the cost of giving up control fell only on the person who adopted it. That is the structure of a public good, where each individual has a reason to let someone else do the delegating. Preferring the Advisor may be less irrational than it looks, because from where each player sat, giving up control didn't clearly pay off for them.
Other parts of the corpus suggest more reasons for the pull toward control. A study of people using AI agents found that trust drops sharply when an action can't be undone and other people can see it, even when the AI's output is good enough. Stakes alone did not have that effect What makes people distrust AI agents they delegate to?. Making a binding offer to a counterpart is exactly that kind of action, and an Advisor lets you approve it first. There is also a reasonable worry about agents built to bargain. Because an AI's preferences can be tuned precisely, the people deploying them have an incentive to make their agents as tough as possible, and if everyone does this, the bargaining gains can be destroyed Can AI agents designed by competing principals destroy bargaining surplus?. Holding back from handing over the keys is a sensible instinct when you can't tell what the other side's agent was built to do.
The economics literature gives a useful contrast. Agrawal, Gans and Goldfarb argue that managers rationally hand decisions to machines even when human judgment would be better, because attention is scarce and has to be spent where it matters most Do managers delegate to machines even when human judgment is better?. A short, focused negotiation game reverses that condition: players have plenty of attention, so the usual reason to delegate goes away and the desire for control takes over. There is also a warning from the other direction. When AI agents are told to optimize for efficiency, they can push it so far that the people they act for lose money. In one credence-goods market, AI experts reached 88% market efficiency by setting prices so low that they earned negative income Do efficiency-focused prompts push AI experts to unsustainable pricing?. An AI that improves results for the group is not automatically working in your interest, and people may sense that.
The corpus suggests that preferring the Advisor is not mainly a bias against AI. It reflects a real gap between what is good for each person and what is good for the group. Getting more value from delegated AI may depend less on making the AI better and more on how the gains are shared, and on letting people approve actions that can't be undone.
Sources 6 notes
In a 243-person negotiation experiment, participants chose the high-control Advisor 44% of the time but chose the autonomous Delegate only 19% of the time—yet groups achieved significantly higher collective surplus only with Delegate access, suggesting humans filter out beneficial AI proposals.
Players who refused the Delegate achieved higher average surplus (0.218) than those who used it (0.201), suggesting the AI agent raised the overall quality of offers rather than enabling exploitation. Manual players benefited from a better offer pool shaped by the Delegate's presence.
In a controlled study of 20 students using a general-purpose AI agent, tasks that were irreversible and externally visible (like sending email) produced sharp trust drops and approval demands even when output quality was rated adequate. High-stakes but correctable tasks showed no such effect.
Because AI reward functions can be precisely tuned as design parameters—unlike human dispositions—principals face incentives to make their agents maximally uncompromising. When many principals do this simultaneously, competitive escalation erodes bargaining gains through mutual destructiveness, mirroring human toughness-signaling but at lower cost.
Agrawal, Gans and Goldfarb show that decision-makers with limited attention will delegate to machines even when human judgment would decide better. The mechanism is attention scarcity: judgment requires deliberate cognitive effort, forcing managers to choose where to apply it, making machine delegation optimal in aggregate.
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GPT-5.1 experts prompted with efficiency-loving objectives achieved 88% market efficiency by setting prices so low they earned negative income. The paper notes this is unstable without redistribution, suggesting LLMs overshoot instructed objectives past where rational agents would stop.
Papers this line draws on 8
The research behind the notes this line reads — ranked by how closely each paper relates.
- An Economy of AI Agents
- LLM-Agent Interactions on Markets with Information Asymmetries
- Choose Your Agent: Tradeoffs in Adopting AI Advisors, Coaches, and Delegates in Multi-Party Negotiation
- Advancing AI Negotiations: A Large-Scale Autonomous Negotiation Competition
- When Artificial Intelligence Does Strategy: Learning, Good Times, Lock-in, and Human-Driven Strategic Renewal
- Plan-Then-Execute: An Empirical Study of User Trust and Team Performance When Using LLM Agents As A Daily Assistant
- Roles of Artificial Intelligence in Collaboration with Humans: Automation, Augmentation, and the Future of Work
- Beyond Preferences in AI Alignment