by Hugh Manatee Wins » Thu Mar 02, 2006 6:13 pm
(Even eBay is being used as a mouse-maze to study how<br>people behave online or in "electronic environments."<br>I aways suspected that the Beanie Baby<br>collecting/trading fad in the 90s was a behavioral<br>experiment. lol.<br>-HMW)*<br> <br><!--EZCODE AUTOLINK START--><a href="http://www.media.mit.edu/research/ResearchPubWeb.pl?ID=52">www.media.mit.edu/researc...b.pl?ID=52</a><!--EZCODE AUTOLINK END--><br>Research Group Projects and Descriptions<br><br>eRationality         eRationality<br>Principal Investigator: Dan Ariely<br><br>In the eRationality group we study how people behave<br>and make day-to-day decisions, particularly in<br>electronic environments. We investigate rationality,<br>semi rationality, bounded rationality, and just plain<br>irrationality. We wish to build tools that reformulate<br>the options available to people so that they can<br>maximize their own happiness.<br><br><br> <br>Acting on Advice from Computer Agents         <br>Dan Ariely<br><br>Agents (human or computer) provide their users with<br>recommendations. This project investigates whether the<br>type of agent making the recommendations (human vs.<br>computer, collaborative vs. individual) influences the<br>decision strategy that people utilize. Specifically,<br>we examine whether the type of agent used influences<br>decision makers' price/quality tradeoffs, risk<br>attitude, willingness to compromise or to follow their<br>gut feeling, or their likelihood of becoming more<br>sensitive to social influences.<br><br> <br>Arbitrary Coherence in Behavioral Economics         <br>Dan Ariely<br><br>Economic theories of valuation generally assume that<br>prices of commodities and assets are derived from<br>underlying "fundamental" values. For example, consumer<br>microeconomics assumes that the demand curves for<br>consumer products (e.g., chocolates, CDs, movies,<br>vacations, or drugs) can ultimately be traced to the<br>valuation of pleasures that consumers anticipate<br>receiving from these products. The current work<br>suggests that preferences are initially malleable but<br>become "imprinted" (precisely defined and largely<br>invariant) after the individual makes an initial<br>decision. Prior to imprinting, preferences are<br>"arbitrary," meaning that they are highly responsive<br>both to normative and non-normative influences.<br>Following imprinting, preferences become "coherent,"<br>meaning that they are more precisely defined and<br>largely fixed in subsequent decisions. The model<br>predicts that consumers will respond to changes in<br>conditions in a coherent fashion, as if supported by<br>demand curves derived from fundamental preference,<br>even when their initial valuations are arbitrary.<br><br> <br>Auction Behavior         <br>Dan Ariely<br><br>As online auctions become more popular, it is<br>important to understand better the process by which<br>people set their bids and the factors that influence<br>them. In this project, we use a survey methodology to<br>survey real bidders on real, online auctions and to<br>try to understand the factors that influence their<br>willingness to bid, and the magnitude of these bids.<br><br> <br>Behavioral Economics         <br>Dan Ariely, Kristina Shampan'er, Leonard Lee and Nina<br>Mazar<br><br>The standard model of of human behavior is a model of<br>rational actors. This model is widely accepted by<br>individuals, policy makers, and businesses. In this<br>work we are attempting to challenge some of the basic<br>assumptions of economics and rationality. The primary<br>focus of the project is consumer preference, trying to<br>better understand the forces that define the demand in<br>the marketplace.<br><br> <br>Expiring Coupons for e-Markets         <br>Dan Ariely and On Amir<br><br>Conversion rates (ratio of visitors to buyers) on the<br>Internet are amazingly low. In our current work, we<br>suggest that one of the most noted advantages of<br>electronic commerce—low search costs—also turns out to<br>be a major reason for low conversion rates. We claim<br>that the low search costs associated with finding<br>products and information about them can cause<br>indecision and procrastination. Moreover, the<br>possibility of finding additional information after a<br>decision has been made has a high potential for<br>regret, which also increases indecision to buy. We are<br>interested in exploring how to overcome these<br>indecision problems. We suggest that imposing<br>deadlines can act as a psychological device that will<br>promote more decisive actions. The mechanism upon<br>which we focus is one where discounts, but not product<br>offers, have a limited lifetime (in the form of<br>expiring discounts).<br><br> <br>Inferring Values from Others in Online Auctions         <br>Dan Ariely<br><br>One of the defining characteristics of online auctions<br>is the information bidders can get from other bidders<br>during the process. In the current project, we are<br>trying to understand how bidders make inferences, what<br>the inferences are based upon, and how accurate their<br>inferences are.<br><br> <br>Psychology of Labor         <br>Dan Ariely<br><br>The standard model of labor in economics assumes that<br>work is aversive and that the employer, therefore, has<br>to pay the employees money to compensate them for the<br>disutility they incur when producing labor (expending<br>time and effort). While this basic model approximates<br>the provision of some types of jobs (smelling shoes to<br>diagnose odor problems, collecting garbage, lifting<br>bricks), it seems to mischaracterize the motivations<br>people have in taking jobs requiring more intellectual<br>abilities, thinking, or creativity. Professors,<br>physicians, teachers, and engineers are but a few<br>examples of professions that fulfill aspects of one’s<br>life that are not captured by the standard model. Over<br>the next few years, our goal is to develop new<br>frameworks, based on the psychology of labor, from<br>which to understand the complex and important problem<br>of compensation and its relationship with motivation,<br>effort, and loyalty.<br><br> <br>Psychology of Money         <br>Dan Ariely, Kristina Shampan'er and Nina Mazar<br><br>Money is a wonderful invention. It lets people<br>specialize, save, and trade. At the same time, money<br>is very abstract, making it very hard to think about<br>the "shadow value" of money (all other possible uses<br>for money). In this project, we are investigating the<br>ways in which individuals think about money, and in<br>particular about the ways in which the psychology of<br>money deviates from standard utility.<br><br>MIT Media Laboratory Home Page | Research Main Index <p></p><i></i>