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After 2010, the consumer price index fell to a low level in the EU. In the euro area, it remained low between 2010 and 2020. The European Central Bank has even had to take action against the emergence of deflation. The situation changed significantly in 2021. Inflation jumped to levels not seen for 40 years in the EU. Our study aims to use artifici...
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... 2024, 14, 964 2 of 14 markets were especially affected, with wheat and nickel showing the most intense and sustained disruptions due to the strategic importance of Russia and Ukraine in the global supply chain. In addition, the war exacerbated global inflationary pressures that were already heightened by the COVID-19 recovery, particularly affecting energy and commodity prices, leading to supply chain disruptions and volatility in key markets [8]. These events emphasize the importance of investigating how structural breaks-defined as sudden and significant changes in market conditions-affect the perceived credibility of predictive advice [9]. ...
This study explores the trust dynamics in financial forecasting by comparing how individuals perceive the credibility of AI and human experts during significant structural market changes. We specifically examine the impact of two types of structural breaks on trust: Additive Outliers, which represent a single yet significant anomaly, and Level Shifts, which indicate a sustained change in data patterns. Grounded in theoretical frameworks such as attribution theory, algorithm aversion, and the Technology Acceptance Model (TAM), this research investigates psychological responses to AI and human advice under uncertainty. This experiment involved 157 participants, recruited via Amazon Mechanical Turk (MTurk), who were asked to forecast stock prices under different structural break scenarios. Participants were randomly assigned to either the AI or human expert treatment group, and the experiment was conducted online. Through this controlled experiment, we find that, while initial trust levels in AI and human experts are comparable, the credibility of advice is more severely compromised following a structural break in the Level Shift condition, compared to the Additive Outlier condition. Moreover, the decline in trust is more pronounced for human experts than for AI. These findings highlight the psychological factors influencing decision making under uncertainty and offer insights into the behavioral responses to AI and human expert systems during structural market changes.
