People Reject (Superior) Algorithms Because They Compare Them to Counter-Normative Reference Points

People often choose to use human forecasts instead of algorithmic forecasts that perform better on average; however, it is unclear what decision process leads people to rely on (inferior) human predictions instead of (superior) algorithmic predictions. In this paper, I propose that people choose between forecasting methods by (1) using their status quo forecasting method by default and (2) deciding whether or not to use the alternative...