Documenti di Didattica
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Documenti di Cultura
Automating Choice
Subscription to reduce friction of decision-making
Theater tickets / Gym membership Amazon: 2 ways PRIME & 15% off if a purchase is transformed from a one-off purchase to a subscription Medical insurance Seems irrational to choose high premium, low deductible, yet many dont want to make repeated calculations about trade offs
What can an algorithm do that leaves me feeling as if I myself had done it?
Algorithm does the work, but the self gets to take the credit for it.
Avoid a loss
>
Collecting a gain
Many features, noticed and unnoticed, can influence decisions. The person who creates that environment is, in our terminology, a choice architect. (Thaler & Sunstein)
Once something is part of ME, letting go of it feels like a loss, even if offered a compensatory gain
Once a month prompt: Would you like to take the $75 youve not spent on restaurants & save/invest it?
Understanding Preferences
Building a better Eliza (1966 computer program)
ELIZA mimicked a therapist by returning whatever user typed with a question
> How does that make you feel? > Tell me more about
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When asked to describe personal priorities, people provide more articulate & explicit goals for lower priorities
Recalling past successes just makes it worse Distracting people by asking them to think about irrelevant topics doesnt help either
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Lottery staged one week before Superbowl Tickets were 4 x 2 inch football cards Odds were 1:227
Asked to sell card back to someone else: No choice: $1.96 Choice: $8.67
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Transition from a modal best guess to a dialog that enables nuance and tuning
Transitional object My me
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Microsoft Clippy had much more computational intelligence, but it only directed more attention to Clippy
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Response starts big Each additional increment gives less & less bang
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Behavioral Economics can explain one way that games hook into motivation
Move from framing where response is flat into framing where the payoff is still increasing. Games do this by slicing infinite horizon into smaller intervals The reverse occurs with Subscription, and explains how friction reduces: Move many short, sharp shocks toward one smooth flat perspective.
Priceless: The Myth of Fair Value (and How to Take Advantage of It) Poundstone (2010)
Delmore Effect (Paul Whitmore Sas)
http://www-psych.stanford.edu/~wit/PhDraft.pdf
http://www.nobel.se/economics/laureates/2002/kahneman-lecture.html
http://danariely.com/the-books/
Sheena Iyengar
http://www.columbia.edu/~ss957/articles.html
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Paradoxes of Hedonics (the study of experience) Experienced vs. Remembered Utility Certain dimensions are easy to evaluate:
Most intense moment Last moment
Peak and End Rule (Kahneman) Experienced vs. Remembered Utility Our mind does not make movies; it takes snapshots Rather than guess the total amount of suffering, people recall the worst instant, and the last instant. If you increase the amount of suffering, but arrange for the last minutes to be less intense, people report a longer period as less painful
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Relevance to Designers
Ruthlessly simplify: Every choice is a pain point
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Power of Defaults
A study of 401K participation, 3 different conditions: Opt-in, Suggestion, and Automatic enroll Fact 1. Most investors follow Default Plan
Changes participation Also contribution level
In a word, No
Notice: People said they were 100% likely to enroll, yet only 14% actually did
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Relevance to Designers
Assume that 90+% will use the default set up, so dont rely on customization to solve problems Wherever possible, inherit behaviors that people exhibit, so that their slight modifications can carve a path that fits their needs Suggest fill-ins for many choices, so that if a customer is lazy they can have the calculator guess what would fit their profile
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Reluctance to trade goods held for use Losses>>opportunity costs (foregone gains) Customers would be far more motivated if we show them what theyre losing out on, rather than offer them a chance to gain additional benefits
Fear is your best friend or your worst enemy. It's like fire. If you can control it, it can cook for you; it can heat your house. If you can't control it, it will burn everything around you and destroy you. Mike Tyson
Designers as Choice Architects have the following techniques available to nudge decisions
iNcentives Understand mappings Defaults Give feedback Expect error Structure complex choices Bend of the payoff curve, both for gains & losses Which mental account? A Peak or an End? The road most taken Support needs to know Fallible predicting future self Streamline, hold hands, create means to feel on track
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Music dictionary B
20,000 entries cover is torn
When evaluated separately: A $24 B $20 When evaluated jointly: A $19 B $27
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Less is More, again You are considering one year jobs at two different magazines
At magazine A you are offered a job paying $35K. However, the other workers who have the same training and experience as you do are making 38K At Magazine B you are offered a job paying $33K, however the other workers have the same training and experience as you do are making $30K
Choice: A > B Happiness B > A
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Primed to feel:
No more price for box of 10 CDs than for 5 CDs
Primed to calculate:
Box of 10 CDs has receives higher valuation than 5
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