If/Then - Invisible Matchmakers: How Algorithms Pair People with Opportunities, with Daniela Saban

Invisible Matchmakers: How Algorithms Pair People with Opportunities, with Daniela Saban

06/12/24 • 23 min

If we want to get fair outcomes, then we need to build fairness into algorithms.

Whether you’re looking for a job, a house, or a romantic partner, there’s an app for that. But as people increasingly turn to digital platforms in search of opportunity, Daniela Saban says it’s time we took a critical look at the role of algorithms, the invisible matchmakers operating behind our screens.

Saban is an Associate Professor of Operations, Information & Technology at Stanford Graduate School of Business whose research interests lie at the intersection of operations, economics, and computer science. With algorithms significantly influencing who gets matched with opportunities, she advocates for building “equity into the algorithm.”

In this episode of If/Then: Business, Leadership, Society, Saban explores how properly designed algorithms can improve the fairness and effectiveness of matching processes. If we want algorithms to work for good, then we need to make conscious choices about how we design them.

Key Takeaways:

Algorithms shape online experiences and real-world outcomes: On dating apps, volunteer matching services, and job websites, algorithms play a crucial role in matching people with opportunities. While these matchups are facilitated in the digital domain, they impact real people in the real world.
Algorithms are not neutral: Algorithms reflect the values and priorities of their designers and have the power to either perpetuate or mitigate inequities.
Thoughtful algorithm design can improve outcomes for all: Saban's research demonstrates that algorithms can be optimized to create more balanced and successful matching experiences. By consciously choosing to prioritize fairness and equity in algorithm design, we can create systems that work for the good of all users.

More Resources:

Daniela Saban, Stanford GSB faculty profile
Stanford GSB Insights, "Cupid’s Code: Tweaking an Algorithm Can Alter the Course of Finding Love Online"
"Improving Match Rates in Dating Markets Through Assortment Optimization" as published in Manufacturing & Service Operations Management

If/Then is a podcast from Stanford Graduate School of Business that examines research findings that can help us navigate the complex issues we face in business, leadership, and society. Each episode features an interview with a Stanford GSB faculty member.

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

If we want to get fair outcomes, then we need to build fairness into algorithms.

Key Takeaways:

Algorithms shape online experiences and real-world outcomes: On dating apps, volunteer matching services, and job websites, algorithms play a crucial role in matching people with opportunities. While these matchups are facilitated in the digital domain, they impact real people in the real world.
Algorithms are not neutral: Algorithms reflect the values and priorities of their designers and have the power to either perpetuate or mitigate inequities.
Thoughtful algorithm design can improve outcomes for all: Saban's research demonstrates that algorithms can be optimized to create more balanced and successful matching experiences. By consciously choosing to prioritize fairness and equity in algorithm design, we can create systems that work for the good of all users.

More Resources:

Daniela Saban, Stanford GSB faculty profile
Stanford GSB Insights, "Cupid’s Code: Tweaking an Algorithm Can Alter the Course of Finding Love Online"
"Improving Match Rates in Dating Markets Through Assortment Optimization" as published in Manufacturing & Service Operations Management

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Previous Episode

Money Talks: Understanding the Language of Business, with Ed deHaan

Unless you’re a CPA or own a large business, it might be hard to see the relevance of accounting. While it’s true that the average person doesn’t necessarily need to be able to read a corporate balance sheet, Professor Ed deHaan says a deeper understanding of accounting — a greater fluency in the “language of business” — can help everyone get a grip on their finances and make more empowered decisions for their lives.

deHaan is a professor of accounting at Stanford Graduate School of Business. In this episode of If/Then: Business, Leadership, Society, he explores why accounting principles are crucial given money's centrality across personal and professional domains, and how by proactively fostering financial literacy, we can empower a generation of informed consumers and leaders equipped to harness money as a force for good.

Key Takeaways:

Financial education should start early: deHaan advocates for teaching middle and high school students fundamental money management skills like understanding credit, interest, and risk. By equipping youth with financial knowledge before they face major decisions, we can set them up for long-term success and empowerment.
Approach financial choices rationally: deHaan encourages individuals to cultivate an "economic lens" when making money decisions. This means objectively weighing not just immediate costs, but opportunity costs and long-term trade-offs too. In evaluating what to do with your money, he suggests asking: Would you advise a family member to do the same thing with theirs?
Financial institutions have a systematic advantage: deHaan warns that financial service providers, like casinos, inherently have the upper hand over consumers. Lack of transparency and human biases like overconfidence often lead to predictable wealth transfers from individuals to financial institutions. Combatting this requires proactive financial education, regulatory protections, and individuals staying vigilant and informed.

More Resources:

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Next Episode

Who Wants to Run? Incentivizing Better Participation in Politics, with Andrew B. Hall

Getting to elect our leaders is certainly a privilege. Yet, even in a representative democracy, the choice that citizens have is often only as good as the candidates they have to choose from. That’s why Professor Andrew B. Hall, The Davies Family Professor of Political Economy, wonders: How do we get society’s best and brightest to participate in politics?

As a political economist at Stanford Graduate School of Business and the Stanford School of Humanities and Sciences, Hall has spent years studying what motivates people to engage in the democratic process. On this episode of If/Then: Business, Leadership, Society, he shares his insights on how we can create a system that attracts a more diverse and qualified pool of candidates to run for public office and encourages greater voter participation at the local, state, and national levels.

Key Takeaways:

Engagement starts with incentives: Whether encouraging better candidates to run for public office or driving higher voter turnout, Hall says our democratic system must incentivize citizens to actively take part in the process.
What's at stake?: People are more likely to participate in democratic processes when they understand how the outcome directly affects them. Hall cites how homeowners are more likely to vote on local zoning issues that impact their property values.
Adapting new technologies thoughtfully: As new technologies emerge, Hall says it's crucial to consider how they can be harnessed to improve democratic participation and address the challenges facing our political system.

More Resources

If/Then is a podcast from Stanford Graduate School of Business that examines research findings that can help us navigate the complex issues we face in business, leadership, and society.

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.