Algorithmic Opacity as a Principal-Agent Problem
Ignacio Cofone & Katherine J. Strandburg
Abstract Principal-agent problems are central to debates over algorithmic transparency, but have been underexplored. Concerns about gaming and trade secrecy, frequently invoked to justify opacity, can also mask self-serving strategic behavior by decision-makers, who may prioritize private benefits over social welfare. This article develops a principal-agent test for determining when algorithmic decision-making should trigger disclosure […]