Algorithmic Fairness: A Tale of Two Approaches
Published Date
Copyright 2026
The growing use of artificial intelligence in high-stakes decision-making has raised important questions about how to address potential discriminatory outcomes. Two distinct approaches have emerged: one from computer science, which focuses on regulating algorithms directly, and another from economics, which emphasizes market design and incentives. This paper examines these competing frameworks and argues that the economic approach leads to superior welfare outcomes.
-
-
Copy CitationJoshua S. Gans, The Political Economy of Artificial Intelligence (University of Chicago Press, 2025), chap. 5, https://www.nber.org/books-and-chapters/political-economy-artificial-intelligence/algorithmic-fairness-tale-two-approaches.Download Citation