Do consumers prefer offers that are easy to compare? An experimental investigation

Consumers make mistakes when facing complex purchasing decision problems but if at least some consumers choose only among offers that are easy to compare with others then firms will adopt common ways to present their offers and thus make choice easier (Gaudeul and Sugden, 2011). We design an original experiment to identify consumers' choice heuristics in the lab. Subjects are presented with menus of offers and do appear to favour offers that are easy to compare with others in the menu. While not all subjects do so, this is enough to deter firms from introducing spurious complexity in the way they present products.Bounded Rationality, Cognitive Limitations, Common Standards, Consumer Choice, Experimental Economics, Heuristics, Libertarian Paternalism, Pricing Formats, Spurious Complexity

Do consumers prefer offers that are easy to compare? An experimental investigation

Abstract Consumers make mistakes when facing complex purchasing decision problems but if at least some consumers disregard any offers that is difficult to compare with others then firms will adopt common ways to present their offers and thus make choice easier. We design an original experiment to identify consumers’ choice heuristics in the lab. Subjects are asked to choose from menus of offers and we measure the extent to which they favor those offers that are easy to compare with others in the menu. A sufficient number of subjects do so with sufficient intensity for offers presented in common terms to generate higher revenues than offers that are expressed in an idiosyncratic way.Bounded Rationality; Cognitive Limitations; Standards; Consumer Choice; Experimental Economics; Heuristics; Pricing Formats; Spurious Complexity

LHCb base-line level-0 trigger 3D-flow implementation

The LHCb Level-0 trigger implementation with the 3D-Flow system offers full programmability, allowing it to adapt to unexpected operating conditions and enabling new, unpredicted physics. The implementation is described in detail and refers to components and technology available today. The 3D-Flow Processor system is a new, technology-independent concept in very fast, real-time system architectures. Based on the replication of a single type of circuit of 100 k gates, which communicates in six directions: bi-directional with North, East, West, and South neighbors, unidirectional from Top to Bottom, the system offers full programmability, modularity, ease of expansion and adaptation to the latest technology. A complete study of its applicability to the LHCb calorimeter triggers is presented. Full description of the input data handling, either in digital or mixed digital-analog form, of the data processing, and the transmission of results to the global level-0 trigger decision unit are provided. Any level-0 trigger algorithm (2*2, 3*3, 4*4, etc.) with up to 20 steps, can be implemented with zero dead-time, while sustaining input data rate (up to 32-bit per input channel, per bunch crossing) at 40 MHz. For each step, each 3D-Flow processor can execute up to 26 operations, inclusive of compare, ranging, finding local maxima, and efficient data exchange with neighboring channels. (One-to-one correspondence between input channel and trigger tower.) Populated with only two main types of components, front-end FPGAs and 3D-Flow processors, a single type of board, it is shown how the whole Level-0 calorimeter trigger can be accommodated into six crates (9U), each containing 16 identical boards. All 3D-Flow inter-chip Bottom to Top ports connection are all contained on the board (data are multiplexed 2:1, PCB traces are shorter than 6 cm); all 3D-flow inter-chip North, East, West, and South ports connections, between boards and crates, are multiplexed (8+2):1 and are shorter than 1.5 m. Full implementation of a 3D-Flow system, for the most complex trigger algorithm, requires 320 cables to north and south crates and 40 cables to east and west crates (Cable cost=$2 each). For applications requiring a simpler real-time algorithm (e.g., requiring less than 20 steps, which is equivalent to 10 layers of 3D-Flow- processors), then the number of connections for the inter-boards (North and South), and inter-crates (East and West) will also be reduced to the number of layers used by the simpler algorithm, thus not requiring to install all cables (e.g., applications requiring only nine layers of 3D-Flow processors will save 32 cables to the North, 32 to the South, four to the East, and four to the West crates). Details are also given on timing and synchronization issues, ASIC design verification, real-time performance monitoring and design (software and hardware) development tools. (37 refs)

The Sound of Others: Surprising Evidence of Conformist Behavior

It has been shown that subjects tend to follow others' behavior even when the external signals are uninformative. In this paper we go one step further, showing that conformism occurs even when the choices of others are not even presented to the subjects, but just indirectly perceived. We use the "Click" version of the Bomb Risk Elicitation Task, in which subjects can infer the behavior of others only from the mass of clicks heard. This signal is payoff-irrelevant and largely uninformative about the actual choices of the other participants. Moreover, it is never mentioned in the instructions and therefore it must be spontaneously (and possibly unconsciously) perceived in order to be used. We control the exposure of subjects to clicks by implementing treatments with and without earmuffs. Moreover, we test whether the introduction of a minimal form of commonality, i.e., facing a common rather than individual resolution of uncertainty, makes conformism more likely to emerge. We find strong evidence of conformist behavior even in such an adverse environment. Simply hearing the others clicking affects subjects' behavior. Introducing a common random draw results in a further dramatic shift of the average choices, in particular by women

Crowdfunding: Determinants of success and funding dynamics

Over the past years crowdfunding emerged as an alternative funding channel for entrepreneurs. In contrast to traditional financiers (banks, venture capital firms or angel investors), crowdfunding allows individuals to fund entrepreneurs directly even with small amounts. We received individual-level data from Startnext, the biggest crowdfunding platform in Germany, enabling us to investigate funding dynamics, explore pledgers' motivations and analyze projects' success determinants. We find substantial heterogeneity of how success (about half of the 2,252 projects in our dataset get funded) is reached. When two thirds of the funding duration has passed, the majority of projects (59%) that eventually get funded are not on a successful track. However, pledges in the final phase can only partially be explained by a rush to get still unfunded projects succeed. Overall, 18.7% of pledges are made to projects that already reached their funding target and our analysis shows that the increased funding towards the deadline is due to pledges to projects that already made it, particularly pre-selling pledges

Choosing whether to compete: Price and format competition with consumer confusion

We run a market experiment where firms can choose not only their price but also whether to present comparable offers. They are faced with artificial demand from consumers who make mistakes when assessing the net value of products on the market. If some offers are comparable however, some consumers favor the best of the comparable offers vs. non-comparable offers. We vary the number of such consumers as well as the strength of their preferences for the best of the comparable offers. In treatments where firms observe the past decisions of their competitors, firms learn not to present comparable offers especially when many consumers prefer comparable offers. This occurs after initial periods with strong competition and leads to lower welfare for all consumers. In treatments where firms cannot monitor the competition, firms end up having to present comparable offers, which leads to an improvement in welfare for all consumers

First insights on the potential of Sentinel-1 for landslides detection

This paper illustrates the potential of Sentinel-1 for landslide detection, Accepted 23 March 2016 mapping and characterization with the aim of updating inventory maps and monitoring landslide activity. The study area is located in Molise, one of the smallest regions of Italy, where landslide processes are frequent. The results achieved by integrating Differential Synthetic Aperture Radar Interferometry (DInSAR) deformation maps and time series, and Geographical Information System (GIS) multilayer analysis (optical, geological, geomorphological, etc.) are shown. The adopted methodology is described followed by an analysis of future perspectives. Sixty-two landslides have been detected, thus allowing the updating of pre-existing landslide inventory maps. The results of our ongoing research show that Sentinel-1 might represent a significant improvement in terms of exploitation of SAR data for landslide mapping and monitoring due to both the shorter revisit time (up to 6 days in the close future) and the wavelength used, which determine an higher coherence compared to other SAR sensors