Automation and Task Allocation Under Asymmetric Information

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1. Verfasser: Valenzuela-Stookey, Quitzé
Format: Preprint
Veröffentlicht: 2025
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author Valenzuela-Stookey, Quitzé
author_facet Valenzuela-Stookey, Quitzé
contents A firm can complete the tasks needed to produce output using either machines or workers. Unlike machines, workers have private information about their preferences over tasks. I study how this information asymmetry shapes the mechanism used by the firm to allocate tasks across workers and machines. I identify important qualitative differences between the mechanisms used when information frictions are large versus small. When information frictions are small, tasks are substitutes: automating one task lowers the marginal cost of other tasks and reduces the surplus generated by workers. When frictions are large, tasks can become complements: automation can raise the marginal cost of other tasks and increase the surplus generated by workers. The results extend to a setting with multiple firms competing for workers.
format Preprint
id arxiv_https___arxiv_org_abs_2511_02675
institution arXiv
publishDate 2025
record_format arxiv
spellingShingle Automation and Task Allocation Under Asymmetric Information
Valenzuela-Stookey, Quitzé
Theoretical Economics
A firm can complete the tasks needed to produce output using either machines or workers. Unlike machines, workers have private information about their preferences over tasks. I study how this information asymmetry shapes the mechanism used by the firm to allocate tasks across workers and machines. I identify important qualitative differences between the mechanisms used when information frictions are large versus small. When information frictions are small, tasks are substitutes: automating one task lowers the marginal cost of other tasks and reduces the surplus generated by workers. When frictions are large, tasks can become complements: automation can raise the marginal cost of other tasks and increase the surplus generated by workers. The results extend to a setting with multiple firms competing for workers.
title Automation and Task Allocation Under Asymmetric Information
topic Theoretical Economics
url https://arxiv.org/abs/2511.02675