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Behavioral Economics as a Lens for Interaction Design  ,[object Object],[object Object]
Framing   the bridge from Psych to Behavioral Economics ,[object Object],4
6 Behavioral economists view Designers/Product Managers as CHOICE ARCHITECTS “ Many features, noticed and unnoticed, can influence decisions. The person who creates that environment is, in our terminology, a  choice architect . ”  (Thaler & Sunstein) Option  A Option  B
Imp of the Perverse  -  Moishe Pipik  ,[object Object],[object Object]
Behavioral Economics honors our inner Snoid ,[object Object],[object Object],[object Object]
Can we make ourselves GTD (get things done)? ,[object Object],[object Object],[object Object]
People fail to form goals for most important areas ,[object Object],Delmore Effect  -  http://www-psych.stanford.edu/~wit/PhDraft.pdf
Eliciting Goals that Matter requires delicacy ,[object Object],[object Object],15
To recall a success, not connected to most important goal, can help overcome the Delmore Effect
Many sites/apps demand explicit expression of a preference Notwithstanding inchoate & tender essence It’s typical to front-load cognitively demanding & emotionally challenging tasks
Next week I will want things that are good for me… Choosing for tonight Choosing for next Thursday Choosing for second Thursday Don ’ t Assume Participants Know Themselves  slide adapted from Prof Russell James III,  Texas Tech U
How can interaction designers solicit the revelation of preferences? 1- Make it possible to accumulate info without deliberate action 2- Enable answers to  “ quiz ”  like questions to create small successes to build greater engagement w/o triggering anxiety Much of the hobo ’ ing invasions by FaceBook, PATH, Angry Birds, et al involves stealing a look at predictors of useful actions to perform for the invaded privacy.  When caught, the services point to the favors generated from the theft. Perhaps we ’ ll get used to being abused this way
Understanding Preferences ,[object Object],[object Object],[object Object],[object Object]
Beware that Q&A can just be pesky ,[object Object],[object Object]
New feedback methods transform our dialog with technology ,[object Object]
“ Revealed  preference ”  increasingly intimate  ,[object Object],[object Object],[object Object],[object Object]
The fight for self control ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Automating Choice ,[object Object],[object Object],[object Object],[object Object],[object Object]
Diminishing Returns (Weber-Fechner Law) ,[object Object],Psychophysics  of Value
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. Behavioral Econ explains one way that games hook into motivation
Experienced vs. Remembered Utility ,[object Object],[object Object],[object Object]
Peak and End Rule (Kahneman) ,[object Object],[object Object],[object Object]
Peak and End Rule for Designers ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
More choice causes less purchasing  (Iyengar) ,[object Object],[object Object],[object Object]
More choice causes less purchasing  (Iyengar) ,[object Object],[object Object],[object Object],[object Object]
Choice Overload shown in 401K participation 32
Power of Defaults  ,[object Object],[object Object],[object Object],[object Object],[object Object]
Can education/training overcome default? ,[object Object],[object Object],[object Object]
How to manage tendency to procrastinate ,[object Object],[object Object],[object Object],[object Object],37
Relevance to Designers ,[object Object],[object Object],[object Object],[object Object],[object Object],33
Descriptive Choice: Prospect Theory
General features of Prospect Theory ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Some consequences for designers ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Goals in Prospect Theory ,[object Object],[object Object],[object Object]
What does Behavioral Economics Offer IXDN? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Linda, the  “ prototype ”  who launched a cognitive revolution ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

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Behavioral Economics as a Lens for Interaction design

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  • 3. 6 Behavioral economists view Designers/Product Managers as CHOICE ARCHITECTS “ Many features, noticed and unnoticed, can influence decisions. The person who creates that environment is, in our terminology, a choice architect . ” (Thaler & Sunstein) Option A Option B
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  • 9. To recall a success, not connected to most important goal, can help overcome the Delmore Effect
  • 10. Many sites/apps demand explicit expression of a preference Notwithstanding inchoate & tender essence It’s typical to front-load cognitively demanding & emotionally challenging tasks
  • 11. Next week I will want things that are good for me… Choosing for tonight Choosing for next Thursday Choosing for second Thursday Don ’ t Assume Participants Know Themselves slide adapted from Prof Russell James III,  Texas Tech U
  • 12. How can interaction designers solicit the revelation of preferences? 1- Make it possible to accumulate info without deliberate action 2- Enable answers to “ quiz ” like questions to create small successes to build greater engagement w/o triggering anxiety Much of the hobo ’ ing invasions by FaceBook, PATH, Angry Birds, et al involves stealing a look at predictors of useful actions to perform for the invaded privacy. When caught, the services point to the favors generated from the theft. Perhaps we ’ ll get used to being abused this way
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  • 20. 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. Behavioral Econ explains one way that games hook into motivation
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  • 26. Choice Overload shown in 401K participation 32
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Editor's Notes

  1. Philip Roth, Operation Shylock (1993), p. 115-117. Moishe  Pipik! The derogatory, joking nonsense name that translates literally to Moses Bellybutton and that probably connoted something slightly different to every Jewish family on our block-the little guy who wants to be a big shot, the kid who pisses in his pants, the someone who is a bit ridiculous, a bit funny, a bit childish, the comical shadow alongside whom we had all grown up, that little folkloric fall guy whose surname designated the thing that for most children was neither here nor there, neither a part nor an orifice, somehow a concavity and a convexity both, something neither upper nor lower, neither lewd nor entirely respectable either, a short enough distance from the genitals to make it suspiciously intriguing and yet, despite this teasing proximity, this conspicuously puzzling centrality, as meaningless as it was without function-the sole archeological evidence of the fairy tale of one’s origins, the lasting imprint of the fetus who was somehow oneself without actually being anyone at all, just about the silliest, blankest, stupidest watermark that could have been devised for a species with a brain like ours. It might as well have been the omphalos at Delphi given the enigma the Pipik presented. Exactly what was your pipik trying to tell you? Nobody could ever really figure it out. You were left with only the word, the delightful playword itself, the sonic prankishness of the two syllabic pips and the closing click encasing those peepingly meekish, unobtrusively shlemielish twin vowels. And all the more rapturously ridiculous for being yoked to Moishe, to Moses, which signaled, even to small and ignorant boys overshadowed by their big wage-earning, wisecracking elders, that in the folk language of our immigrant grandparents and their inconceivable forebears there was a strong predisposition to think of even the supermen of our tribe as all kind of imminently pathetic. The goyim had Paul Bunyan and we had Moishe Pipik.          Edgar Allan Poe in his short story, "The Imp of the Perverse". We have a task before us which must be speedily performed. We know that it will be ruinous to make delay. The most important crisis of our life calls, trumpet-tongued, for immediate energy and action. ... It must, it shall be undertaken to-day, and yet we put it off until to-morrow, and why? There is no answer, except that we feel perverse, using the word with no comprehension of the principle. Examine these and similar actions as we will, we shall find them resulting solely from the spirit of the Perverse.  We perpetrate them merely because we feel that we should not.