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Privacy and Algorithmic Delegated Investment : An Experimental Approach

Date : Jeudi | 2023-04-06 à 12h30
Lieu : Salle B.103

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Mehdi LOUAFI (LEO, Université d’Orléans)

The exchange of private data associated with the growing use of algorithms and artificial intelligence has significantly grown since the beginning of the 21st century. Households are marginally involved in this sharing process and are, most often, unaware of the existence of these exchanges and their purpose. Due to the transversality of this digital transformation, they are subjected daily, either with minimal consent or voluntarily, to algorithms in order to perform various economic activities such as the delegation of their savings or retirement. Given recent developments in the wealth management industry with the introduction of Robo-advisors, this paper focuses on the determinants of individuals’ sensitivity to the management of private data used to feed algorithms or artificial intelligence in the context of investment delegation decisions. We attempt to propose an experimental protocol that measures this said sensitivity by exposing individuals to data leaks in varying investment tasks. The presentation will consist of a live demonstration of the experiment.