Randomization as a tool for organisational decision making: a debatable or debilitating proposition?

Dushnitsky, G, Eggers, J P, Franzoni, C and Teodoridis, F (2023) Randomization as a tool for organisational decision making: a debatable or debilitating proposition? Industry and Innovation, 30 (10). pp. 1275-1293. ISSN 1366-2716

Abstract

The role of experts has been called into question recently. Scholarly works debate whether expert judgement is given excessive reliance in innovation, science and entrepreneurial decision-making. Increasingly, there are arguments that managers, founders and funders would be better off relying on randomization to a much higher degree. This article sheds light on the integration of randomization in decision making, presenting the pros and cons of expert advice, on the one hand, and randomization, on the other hand. The discussion goes beyond the Expert-Randomization dichotomy and lays the foundation for thinking about decision making in the modern era, and specifically the role of Artificial Intelligence.