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X-WR-CALNAME;VALUE=TEXT:TSE
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DTSTART:20221030T030000
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DTSTART:20220327T020000
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UID:calendar.129772.field_date.0@www.tse-fr.eu
DTSTAMP:20260612T173934Z
CREATED:20220928T231001Z
DESCRIPTION:Xavier Lambin (ESSEC Business School)\, “From black box to glas
 s box: algorithmic explainability as a strategic decision”\, Digital Works
 hop\, TSE & IAST\, October 19\, 2022\, 12:30–13:30\, Auditorium A4 - level
  1.\n\nThe best-performing and most popular algorithms are often the least
  explainable. In parallel\,\nthere is growing concern and evidence that so
 phisticated algorithms may engage\, autonomously\,\nin prot-maximizing but
  welfare-damaging strategies. Drawing on the literature\non self-regulatio
 n and following recent regulatory proposals\, we model a regulator who see
 ks to\nencourage algorithmic compliance through the threat of (costly and 
 imperfect) audits. Firms\nmay invest in \explainability' to better underst
 and their own algorithms and reduce their cost of\ncompliance. We nd that\
 , when audit ecacy is not aected by explainability\, audit regulation\nalw
 ays induces investment in explainability. Mandatory disclosure of the expl
 ainability level\nmakes regulation even more eective\, because it allows r
 ms to signal compliance. If\, instead\,\nexplainability facilitates regula
 tory audits a rm may attempt to hide a potential misconduct behind\nalgori
 thmic opacity. Because of regulatory opportunism\, mandatory disclosure ma
 y further\ndeter investment in explainability. In these cases\, regulatory
  audits may be counterproductive\nand laissez-faire or minimum explainabil
 ity standards should be envisaged.
DTSTART;TZID=Europe/Paris:20221019T133000
DTEND;TZID=Europe/Paris:20221019T143000
LAST-MODIFIED:20260113T095129Z
LOCATION:TSE & IAST\, October 19\, 2022\, 12:30–13:30\, Auditorium A4 - lev
 el 1
SUMMARY:Digital Workshop
URL;TYPE=URI:https://www.tse-fr.eu/seminars/2022-black-box-glass-box-algori
 thmic-explainability-strategic-decision
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