Regulatory investigations by Self-Regulatory organizations (SROs) are usually considered cheaper than investigations by a government. However, in practice, oversight by an SRO is mostly still supplemented by governmental oversight. The government may exert oversight over the SRO itself, a construction referred to as “meta-regulation" or "co-regulation", or oversee members of the SRO. Indeed, the overall performance of SROs has been mixed, and theoretical models show that they have incentives to set lax standards or to cover up detected violations. Nonetheless, some research indicates that meta-regulation, oversight of the SRO itself, may not be necessary in some settings. Using a costly-state-verification model, DeMarzo et al. (2001; 2005) show that when the government implicitly threatens to conduct additional investigations of SRO members, a relatively "good" outcome can be established as an equilibrium. In this "good" outcome, the SRO chooses to follow high performance standards in order to pre-empt any (relatively costly) governmental investigation. As a result, no costly governmental investigations of the SRO members take place, and no meta-regulation of the SRO is necessary. I extend this model to include plausible settings in which the actual rigor of oversight by the SRO can be verified only ex-post. I show that in such settings, an SRO may have incentives to announce stricter regimes than it effectively implements and that, as a result, a "bad", Pareto-inefficient outcome may be established as an equilibrium. In the "bad" outcome, the SRO relinquishes all oversight to the government. The predictions of this model are supported by experimental tests. The "good" equilibrium could be re-established with sufficient meta-regulation of the SRO. The results thus suggest a continuing need for meta-regulation in these settings. This form of meta-regulation may be of a relatively light nature, limited to verifying and sanctioning that the SRO implements its announced policies.
{"title":"Self-Regulation and Meta-Regulation – Regulating the Members or the SRO. A Theoretical and Experimental Study","authors":"Silvester van Koten","doi":"10.2139/ssrn.3325599","DOIUrl":"https://doi.org/10.2139/ssrn.3325599","url":null,"abstract":"Regulatory investigations by Self-Regulatory organizations (SROs) are usually considered cheaper than investigations by a government. However, in practice, oversight by an SRO is mostly still supplemented by governmental oversight. The government may exert oversight over the SRO itself, a construction referred to as “meta-regulation\" or \"co-regulation\", or oversee members of the SRO. Indeed, the overall performance of SROs has been mixed, and theoretical models show that they have incentives to set lax standards or to cover up detected violations. Nonetheless, some research indicates that meta-regulation, oversight of the SRO itself, may not be necessary in some settings. Using a costly-state-verification model, DeMarzo et al. (2001; 2005) show that when the government implicitly threatens to conduct additional investigations of SRO members, a relatively \"good\" outcome can be established as an equilibrium. In this \"good\" outcome, the SRO chooses to follow high performance standards in order to pre-empt any (relatively costly) governmental investigation. As a result, no costly governmental investigations of the SRO members take place, and no meta-regulation of the SRO is necessary. I extend this model to include plausible settings in which the actual rigor of oversight by the SRO can be verified only ex-post. I show that in such settings, an SRO may have incentives to announce stricter regimes than it effectively implements and that, as a result, a \"bad\", Pareto-inefficient outcome may be established as an equilibrium. In the \"bad\" outcome, the SRO relinquishes all oversight to the government. The predictions of this model are supported by experimental tests. The \"good\" equilibrium could be re-established with sufficient meta-regulation of the SRO. The results thus suggest a continuing need for meta-regulation in these settings. This form of meta-regulation may be of a relatively light nature, limited to verifying and sanctioning that the SRO implements its announced policies.","PeriodicalId":10477,"journal":{"name":"Cognitive Social Science eJournal","volume":"39 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2019-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"73141627","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
During economic downturns, consumers change their buying patterns, resulting in suboptimal retail fulfillment performance in the absence of adjustments to these changes by retailers. This paper shows how household stockpiling patterns evolved during the “Great Recession” of 2008-2009, and demonstrates the impact of this change on inventory management at a retail chain that pursues a high-low pricing strategy. In the face of increasing environmental stress due to financial and economic events, consumers are likely to spend more time at home and shop more frugally. At the same time, in a high-low (promotional) environment, consumers may be incentivized to increase the amount they stockpile to take advantage of promotional prices. Accordingly, we use the two-segment household inventory theory to categorize consumers in a retail channel into non-stockpiling and stockpiling segments. Drawing on a combination of household-level and retailer-level analysis and using the 2008–2009 financial crisis as a natural experiment, we find that as environmental stress increases, consumers, in general, decrease their consumption rates. However, they also increase the time between shopping trips, thus hold inventories for a longer period of time. Finally, the relative size of the stockpiling segment to the non-stockpilers is reduced, perhaps due to budget constraints on a larger percent of the population. These changes in consumer stockpiling behavior add complexity to retail inventory planning. In particular, lower consumer demand does not imply lower inventory risk during times of economic downturns. In order to efficiently meet consumer needs, retailers need to carefully adjust inventory and safety stock levels (both of which, as we find, may actually need to increase or decrease during promotional periods), due to the compound variability in consumption rate, inventory holding duration, and size of the stockpiling segment.
{"title":"Retail Inventory, Consumer Stockpiling, and Environmental Stress: Empirical Evidence From a Natural Experiment","authors":"X. Pan, B. Mantin, M. Dresner","doi":"10.2139/ssrn.3308690","DOIUrl":"https://doi.org/10.2139/ssrn.3308690","url":null,"abstract":"During economic downturns, consumers change their buying patterns, resulting in suboptimal retail fulfillment performance in the absence of adjustments to these changes by retailers. This paper shows how household stockpiling patterns evolved during the “Great Recession” of 2008-2009, and demonstrates the impact of this change on inventory management at a retail chain that pursues a high-low pricing strategy. In the face of increasing environmental stress due to financial and economic events, consumers are likely to spend more time at home and shop more frugally. At the same time, in a high-low (promotional) environment, consumers may be incentivized to increase the amount they stockpile to take advantage of promotional prices. Accordingly, we use the two-segment household inventory theory to categorize consumers in a retail channel into non-stockpiling and stockpiling segments. Drawing on a combination of household-level and retailer-level analysis and using the 2008–2009 financial crisis as a natural experiment, we find that as environmental stress increases, consumers, in general, decrease their consumption rates. However, they also increase the time between shopping trips, thus hold inventories for a longer period of time. Finally, the relative size of the stockpiling segment to the non-stockpilers is reduced, perhaps due to budget constraints on a larger percent of the population. These changes in consumer stockpiling behavior add complexity to retail inventory planning. In particular, lower consumer demand does not imply lower inventory risk during times of economic downturns. In order to efficiently meet consumer needs, retailers need to carefully adjust inventory and safety stock levels (both of which, as we find, may actually need to increase or decrease during promotional periods), due to the compound variability in consumption rate, inventory holding duration, and size of the stockpiling segment.","PeriodicalId":10477,"journal":{"name":"Cognitive Social Science eJournal","volume":"14 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2018-12-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"89620425","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
We suggest that one individual holds multiple degrees of belief about an outcome, given the evidence. We then investigate the implications of such noisy probabilities for a buyer and a seller of binary options and find the odds agreed upon to ensure zero-expectation betting, differ from those consistent with the relative frequency of outcomes. More precisely, the buyer and the seller agree to odds that are higher (lower) than the reciprocal of their averaged unbiased probabilities when this average indicates the outcome is more (less) likely to occur than chance. The favorite-longshot bias thereby emerges to establish the foundation of an equitable market. As corollaries, our work suggests the old-established way of revealing someone's degree of belief through wagers may be more problematic than previously thought, and implies that betting markets cannot generally promise to support rational decisions.
{"title":"Fair Odds for Noisy Probabilities","authors":"Ulrik W. Nash","doi":"10.2139/ssrn.3292804","DOIUrl":"https://doi.org/10.2139/ssrn.3292804","url":null,"abstract":"We suggest that one individual holds multiple degrees of belief about an outcome, given the evidence. We then investigate the implications of such noisy probabilities for a buyer and a seller of binary options and find the odds agreed upon to ensure zero-expectation betting, differ from those consistent with the relative frequency of outcomes. More precisely, the buyer and the seller agree to odds that are higher (lower) than the reciprocal of their averaged unbiased probabilities when this average indicates the outcome is more (less) likely to occur than chance. The favorite-longshot bias thereby emerges to establish the foundation of an equitable market. As corollaries, our work suggests the old-established way of revealing someone's degree of belief through wagers may be more problematic than previously thought, and implies that betting markets cannot generally promise to support rational decisions.","PeriodicalId":10477,"journal":{"name":"Cognitive Social Science eJournal","volume":"23 s48","pages":""},"PeriodicalIF":0.0,"publicationDate":"2018-11-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"91417380","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
We investigate the role of small victories, in the form of short-term goal achievements, on long-term health outcomes. Using novel large-scale data from a popular mobile calorie and weight management application, we track the daily health outcomes across a large number of users. The application sets a salient daily budget for calories, and by comparing cases in which the users are under versus over-budget, we document empirical patterns about the role of reference-dependence calorie consumption and future weight loss. Motivated by these patterns, we estimate a dynamic structural model of calorie consumption with reference-dependent utility and serial correlation to evaluate various hypothetical goal design schemes. First, we show that adaptive goal designs are more effective at encouraging disciplined calorie consumption than goal designs that are uniformly applied to all users. Second, our analysis of goal personalization reveals that users with high initial BMI may benefit the most from challenging goals. Third, we demonstrate that exposing users to a variety of means towards goal achievement may be worthwhile.
{"title":"Harnessing the Small Victories: Goal Design Strategies for a Mobile Calorie and Weight Loss Tracking Application","authors":"Kosuke Uetake, N. Yang","doi":"10.2139/ssrn.2928441","DOIUrl":"https://doi.org/10.2139/ssrn.2928441","url":null,"abstract":"We investigate the role of small victories, in the form of short-term goal achievements, on long-term health outcomes. Using novel large-scale data from a popular mobile calorie and weight management application, we track the daily health outcomes across a large number of users. The application sets a salient daily budget for calories, and by comparing cases in which the users are under versus over-budget, we document empirical patterns about the role of reference-dependence calorie consumption and future weight loss. Motivated by these patterns, we estimate a dynamic structural model of calorie consumption with reference-dependent utility and serial correlation to evaluate various hypothetical goal design schemes. First, we show that adaptive goal designs are more effective at encouraging disciplined calorie consumption than goal designs that are uniformly applied to all users. Second, our analysis of goal personalization reveals that users with high initial BMI may benefit the most from challenging goals. Third, we demonstrate that exposing users to a variety of means towards goal achievement may be worthwhile.","PeriodicalId":10477,"journal":{"name":"Cognitive Social Science eJournal","volume":"116 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2018-11-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"76245501","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract This paper identifies cognitive conditions under which a rational individual or group decision-maker will want to commit ex ante to some choice restrictions, in order to get extra information about an uncertain state of nature. We show that the implemented limitations will then bring her to solve a monotone decision problem. This provides a behavioral/microeconomic foundation for the recurrence of this type of problem in many contexts. From another angle, the analysis explains why and when individuals and organizations resort to automatic responses or routines in some circumstances, and how this can shape their environment.
{"title":"Prior Knowledge and Monotone Decision Problems","authors":"Bernard Sinclair-Desgagné","doi":"10.2139/ssrn.3204669","DOIUrl":"https://doi.org/10.2139/ssrn.3204669","url":null,"abstract":"Abstract This paper identifies cognitive conditions under which a rational individual or group decision-maker will want to commit ex ante to some choice restrictions, in order to get extra information about an uncertain state of nature. We show that the implemented limitations will then bring her to solve a monotone decision problem. This provides a behavioral/microeconomic foundation for the recurrence of this type of problem in many contexts. From another angle, the analysis explains why and when individuals and organizations resort to automatic responses or routines in some circumstances, and how this can shape their environment.","PeriodicalId":10477,"journal":{"name":"Cognitive Social Science eJournal","volume":"17 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2018-11-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"81171572","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
In this paper, we investigate how observable cognitive skills influence the development of strategic sophistication. To answer this question, we study experimentally how psychometric measures of theory-of-mind and cognitive ability (or‘fluid intelligence')work together with age to determine the strategic ability and level-k behavior of children in a variety of incentivized strategic interactions. We find that better theory-of-mind and cognitive ability predict strategic sophistication in competitive games. Furthermore, age and cognitive ability act in tandem as complements, while age and theory-of-mind operate independently. Older children respond to information about the cognitive ability of their opponent, which provides support for the emergence of a sophisticated strategic theory-of-mind. Finally, theory-of-mind and age strongly predict whether children respond to intentions in a gift-exchange game, while cognitive ability has no influence, suggesting that different psychometric measures of cognitive skill correspond to different cognitive processes in strategic situations that involve the understanding of intentions.
{"title":"Cognitive Skills and the Development of Strategic Sophistication","authors":"Eduardo Fé, David Gill","doi":"10.2139/ssrn.3285484","DOIUrl":"https://doi.org/10.2139/ssrn.3285484","url":null,"abstract":"In this paper, we investigate how observable cognitive skills influence the development of strategic sophistication. To answer this question, we study experimentally how psychometric measures of theory-of-mind and cognitive ability (or‘fluid intelligence')work together with age to determine the strategic ability and level-k behavior of children in a variety of incentivized strategic interactions. We find that better theory-of-mind and cognitive ability predict strategic sophistication in competitive games. Furthermore, age and cognitive ability act in tandem as complements, while age and theory-of-mind operate independently. Older children respond to information about the cognitive ability of their opponent, which provides support for the emergence of a sophisticated strategic theory-of-mind. Finally, theory-of-mind and age strongly predict whether children respond to intentions in a gift-exchange game, while cognitive ability has no influence, suggesting that different psychometric measures of cognitive skill correspond to different cognitive processes in strategic situations that involve the understanding of intentions.","PeriodicalId":10477,"journal":{"name":"Cognitive Social Science eJournal","volume":"201 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2018-11-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"81081508","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Driven by the ubiquity and strong context dependence of mobile app use, Internet companies are in a race of cross-industry expansion to build a seamless ecosystem incorporating various contexts. This paper offers several insights on improving app use in the era of mobile Internet. In contrast to PC Internet, in addition to hedonic and utilitarian states, we uncover a novel social state that is prevalent but transient, indicating mobile users have a fundamental need for frequent light-social activities. Thus, one strategy to increase use is to enrich an app’s social components, specifically on light-social functionalities. In addition, our results show that app use interdependence is the strongest under the hedonic state. This indicates the strategic value of boosting current app use is the highest in the hedonic state, providing guidance to companies on better spending of their limited marketing resources. Furthermore, we show that these internal states are interdependent of each other and their dynamic is affected by contextual factors that are distinct in the mobile context. Thus, companies should put more weight on tailoring their engagement strategies under different contexts in the ear of mobile Internet than the traditional PC context.
{"title":"How Is Mobile User Behavior Different? — A Hidden Markov Model of Mobile Application Usage Dynamics","authors":"Shaohui Wu, Yong Tan, Yubo Chen, Yitian Liang","doi":"10.2139/ssrn.3284269","DOIUrl":"https://doi.org/10.2139/ssrn.3284269","url":null,"abstract":"Driven by the ubiquity and strong context dependence of mobile app use, Internet companies are in a race of cross-industry expansion to build a seamless ecosystem incorporating various contexts. This paper offers several insights on improving app use in the era of mobile Internet. In contrast to PC Internet, in addition to hedonic and utilitarian states, we uncover a novel social state that is prevalent but transient, indicating mobile users have a fundamental need for frequent light-social activities. Thus, one strategy to increase use is to enrich an app’s social components, specifically on light-social functionalities. In addition, our results show that app use interdependence is the strongest under the hedonic state. This indicates the strategic value of boosting current app use is the highest in the hedonic state, providing guidance to companies on better spending of their limited marketing resources. Furthermore, we show that these internal states are interdependent of each other and their dynamic is affected by contextual factors that are distinct in the mobile context. Thus, companies should put more weight on tailoring their engagement strategies under different contexts in the ear of mobile Internet than the traditional PC context.","PeriodicalId":10477,"journal":{"name":"Cognitive Social Science eJournal","volume":"56 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2018-11-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"77150101","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2018-10-25DOI: 10.1108/IJCHM-04-2017-0239
Panagiotis Stamolampros, Nikolaos Korfiatis
Purpose Although the literature has established the effect of online reviews on customer purchase intentions, the influence of psychological factors on online ratings is overlooked. This paper aims to examine these factors under the perspective of construal level theory (CLT). Design/methodology/approach Using review data from TripAdvisor and Booking.com, the authors study three dimensions of psychological distances (temporal, spatial and social) and their direct and interaction effects on review valence, using regression analysis. The authors examine the effect of these distances on the information content of online reviews using a novel bag-of-words model to assess its concreteness. Findings Temporal distance and spatial distance have positive direct effects on review valence. Social distance, on the other hand, has a negative direct effect. However, its interaction with the other two distances has a positive effect, suggesting that consumers tend to “zoom-out” to less concrete things in their ratings. Practical implications The findings provide implications for the interpretation of review ratings by the service providers and their information content. Originality/value This study extends the CLT and electronic word-of-mouth literature by jointly exploring the effect of all three psychological distances that are applicable in post-purchase evaluations. Methodologically, it provides a novel application of the bag-of-words model in evaluating the concreteness of online reviews.
{"title":"Exploring the Behavioral Drivers of Review Valence: The Direct and Indirect Effects of Multiple Psychological Distances.","authors":"Panagiotis Stamolampros, Nikolaos Korfiatis","doi":"10.1108/IJCHM-04-2017-0239","DOIUrl":"https://doi.org/10.1108/IJCHM-04-2017-0239","url":null,"abstract":"\u0000Purpose\u0000Although the literature has established the effect of online reviews on customer purchase intentions, the influence of psychological factors on online ratings is overlooked. This paper aims to examine these factors under the perspective of construal level theory (CLT).\u0000\u0000\u0000Design/methodology/approach\u0000Using review data from TripAdvisor and Booking.com, the authors study three dimensions of psychological distances (temporal, spatial and social) and their direct and interaction effects on review valence, using regression analysis. The authors examine the effect of these distances on the information content of online reviews using a novel bag-of-words model to assess its concreteness.\u0000\u0000\u0000Findings\u0000Temporal distance and spatial distance have positive direct effects on review valence. Social distance, on the other hand, has a negative direct effect. However, its interaction with the other two distances has a positive effect, suggesting that consumers tend to “zoom-out” to less concrete things in their ratings.\u0000\u0000\u0000Practical implications\u0000The findings provide implications for the interpretation of review ratings by the service providers and their information content.\u0000\u0000\u0000Originality/value\u0000This study extends the CLT and electronic word-of-mouth literature by jointly exploring the effect of all three psychological distances that are applicable in post-purchase evaluations. Methodologically, it provides a novel application of the bag-of-words model in evaluating the concreteness of online reviews.\u0000","PeriodicalId":10477,"journal":{"name":"Cognitive Social Science eJournal","volume":"155 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2018-10-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"80678764","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Expectations of people with high and low intelligence differ considerably. High intelligence is associated with several desirable social outcomes, while low intelligence is associated with low social status and poverty. We assumed that attributing high intelligence to a person could lead to a more positive evaluation of them and, as a result, less negative attitudes toward them. In the experimental study (N = 781) we investigated how levels of perceived intelligence impact the long-term stigmatization of dirty workers. The results show that perceived high intelligence of dirty workers decreases long-term stigmatization towards them, but these findings relate only to people performing moral dirty work. Implicit theories about intelligence were controlled as a covariate and had no significant effect. Results are discussed in terms of the positive effect of perceived high intelligence on everyday perception. Limitations and future directions are also discussed.
{"title":"Perceived Intelligence and Long-Term Stigmatization of Dirty Workers","authors":"M. Terskova, E. Agadullina","doi":"10.2139/ssrn.3269225","DOIUrl":"https://doi.org/10.2139/ssrn.3269225","url":null,"abstract":"Expectations of people with high and low intelligence differ considerably. High intelligence is associated with several desirable social outcomes, while low intelligence is associated with low social status and poverty. We assumed that attributing high intelligence to a person could lead to a more positive evaluation of them and, as a result, less negative attitudes toward them. In the experimental study (N = 781) we investigated how levels of perceived intelligence impact the long-term stigmatization of dirty workers. The results show that perceived high intelligence of dirty workers decreases long-term stigmatization towards them, but these findings relate only to people performing moral dirty work. Implicit theories about intelligence were controlled as a covariate and had no significant effect. Results are discussed in terms of the positive effect of perceived high intelligence on everyday perception. Limitations and future directions are also discussed.","PeriodicalId":10477,"journal":{"name":"Cognitive Social Science eJournal","volume":"16 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2018-10-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"89382546","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Product recommendation agents (RAs) assist online firms to adapt their suggested offers to users’ preferences, there by lowering consumers’ decision effort and improving their decision accuracy. The abundance of product choices available on the internet has made the need for RAs essential mainly due to the increased decision effort by consumers associated with making a selection. The concept of effort has been central in decision-making, yet evidence on the role of effort has been contradictory on whether it should be regarded merely as a cost for the user or as a benefit as well since higher effort improves the odds of a better decision. Building on Social Exchange theory, we suggest that interactions between users and RAs are driven by the concepts of perceived interdependence and reciprocity. We suggest that perceived user effort decreases, whereas RA effort increases, perceived RA quality. We further posit that users evaluate RAs based on their own individual effort expended in relation to their perceptions of the effort that the RA has put into the process of generating recommendations. The evidence from two experimental studies and an integrative data analysis suggests that the negative effect of user effort on RA quality is reduced when users perceive greater RA effort. Such an effect is negatively moderated by user familiarity. Our findings enrich the understanding of the conflicting role of user effort in decision-making and offer important insights into how online firms can improve the utilization of their RAs.
{"title":"Scratch My Back and I’ll Scratch Yours: The Impact of the Interaction Between User Effort and Recommendation Agent Effort on Perceived Recommendation Agent Quality","authors":"Dimitrios Tsekouras, Ting Li, I. Benbasat","doi":"10.2139/ssrn.3258053","DOIUrl":"https://doi.org/10.2139/ssrn.3258053","url":null,"abstract":"Product recommendation agents (RAs) assist online firms to adapt their suggested offers to users’ preferences, there by lowering consumers’ decision effort and improving their decision accuracy. The abundance of product choices available on the internet has made the need for RAs essential mainly due to the increased decision effort by consumers associated with making a selection. The concept of effort has been central in decision-making, yet evidence on the role of effort has been contradictory on whether it should be regarded merely as a cost for the user or as a benefit as well since higher effort improves the odds of a better decision. Building on Social Exchange theory, we suggest that interactions between users and RAs are driven by the concepts of perceived interdependence and reciprocity. We suggest that perceived user effort decreases, whereas RA effort increases, perceived RA quality. We further posit that users evaluate RAs based on their own individual effort expended in relation to their perceptions of the effort that the RA has put into the process of generating recommendations. The evidence from two experimental studies and an integrative data analysis suggests that the negative effect of user effort on RA quality is reduced when users perceive greater RA effort. Such an effect is negatively moderated by user familiarity. Our findings enrich the understanding of the conflicting role of user effort in decision-making and offer important insights into how online firms can improve the utilization of their RAs.","PeriodicalId":10477,"journal":{"name":"Cognitive Social Science eJournal","volume":"15 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2018-10-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"91131057","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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