Agentic Interactions

This paper explores how AI agents inherit and potentially amplify human heterogeneity when tasked with negotiating on behalf of individuals. By comparing agentic interactions to a human-to-human benchmark, the study reveals that instructional prompts act as carriers for the principal's personality, biases, and demographic traits. Remarkably, delegating decisions to machines leads to a greater dispersion of outcomes and a breakdown of traditional fairness norms, such as the 50/50 split. The authors introduce the concept of "machine fluency"—the unique skill of effectively aligning an AI's behavior with one’s own goals—as a new source of economic inequality. These findings sugges...