Trusting Humans and Avatars: Behavioral and Neural Evidence

Over the past decade, information technology has dramatically changed the context in which economic transactions take place. Increasingly, transactions are computer-mediated, so that, relative to human-human interactions, human-computer interactions are gaining in relevance. Computer-mediated transactions, and in particular those related to the Internet, increase perceptions of uncertainty. Therefore, trust becomes a crucial factor in the reduction of these perceptions. To investigate this important construct, we studied individual trust behavior and the underlying brain mechanisms through a multi-round trust game. Participants acted in the role of an investor, playing against both humans and avatars. The behavioral results show that participants trusted avatars to a similar degree as they trusted humans. Participants also revealed similarity in learning an interaction partner’s trustworthiness, independent of whether the partner was human or avatar. However, the neuroimaging findings revealed differential responses within the brain network that is associated with theory of mind (mentalizing) depending on the interaction partner. Based on these results, the major conclusion of our study is that, in a situation of a computer with human-like characteristics (avatar), trust behavior in human-computer interaction resembles that of human-human interaction. On a deeper neurobiological level, our study reveals that thinking about an interaction partner’s trustworthiness activates the mentalizing network more strongly if the trustee is a human rather than an avatar. We discuss implications of these findings for future research

The robustness of preferences during a crisis: The case of COVID-19

We investigate how preferences have been affected by exposure to the COVID-19 crisis. Our main contributions are: first, our participant pool consists of a large general population sample; second, we elicited a wide range of preferences (risk, time, ambiguity, and social preferences) using different incentivized experimental tasks; third, we elicited preferences before the onset of the crises and in three additional waves during the crises over a time period of more than a year, allowing us to investigate both short-term and medium-term preference responses; fourth, besides the measurement of causal effects of the crisis, we also analyze within each wave during the crisis, how differential exposure to the crisis in the health and financial domain affects preferences. We find that preferences remain remarkably stable during the crisis. Comparing them before the start and during the crisis, we do not observe robust differences in any of the elicited preferences. Moreover, individual differences in the exposure to the crisis at best show only weak effects in the financial domain

Fads and Trends in Business and Information Systems Engineering and Information Systems Research – A Comparative Literature Analysis

The business and information systems engineering (BISE) discipline, dominating in the German-speaking countries, where it is called“Wirtschaftsinformatik”, is currently undergoing a phase of increasing internationalization and the U.S.-based Information Systems (IS) discipline is often considered an ideal. Studies show that BISE has often dealt with fads in the past – for IS there are no findings reporting on the diffusion of fads. The objective of the paper is to close this research gap. The authors conducted a literature analysis to investigate the development of topics and terms in BISE and IS from 1994 to 2007. Titles, abstracts and keywords of 2,564 articles in three BISE journals and 5,647 articles in five IS journals were analyzed. The results show that BISE is topically more diverse and concrete than IS. In addition, the rate of fads is higher in BISE than IS. Being engaged in fads is not necessarily negative – rather, it may considerably contribute to the relevance of research. However, it has to be considered that an overly intense orientation on fads may negatively influence a cumulative research progress. Hence, the authors conclude that for BISE and IS, which both have a theoretical and pragmatic mission, a balanced ratio of short- and long-term topics seems appropriate

Consensus-Based Optimization with Truncated Noise

Consensus-based optimization~(CBO) is a versatile multi-particle metaheuristic optimization method suitable for performing nonconvex and nonsmooth global optimizations in high dimensions. It has proven effective in various applications while at the same time being amenable to a theoretical convergence analysis. In this paper, we explore a variant of CBO, which incorporates truncated noise in order to enhance the well-behavedness of the statistics of the law of the dynamics. By introducing this additional truncation in the noise term of the CBO dynamics, we achieve that, in contrast to the original version, higher moments of the law of the particle system can be effectively bounded. As a result, our proposed variant exhibits enhanced convergence performance, allowing in particular for wider flexibility in choosing the parameters of the method as we confirm experimentally. By analyzing the time-evolution of the Wasserstein-$2$ distance between the empirical measure of the interacting particle system and the global minimizer of the objective function, we rigorously prove convergence in expectation of the proposed CBO variant requiring only minimal assumptions on the objective function and on the initialization. Numerical evidences clearly demonstrate the benefit of truncating the noise in CBO.Comment: 23 page

How Consumer Impulsiveness Moderates Online Trustworthiness Evaluations: Neurophysiological Insights

With the emergence of new technologies, in particular the Internet, the opportunity for impulsive purchases have expanded enormously. In this research-in-progress, we report the current status of an fMRI-project in which we investigated differences between neural processes in the brains of impulsive and non-impulsive shoppers during the trustworthiness evaluation of online offers. Both our behavioral and fMRI data provide evidence that the impulsiveness of individuals can exert significant influence on the evaluation of online offers, and can potentially affect subsequent purchase behavior. We show that impulsive individuals evaluate trustworthy and untrustworthy offers differently than do non-impulsive individuals. With respect to brain activation, both experimental groups (i.e., impulsive, non-impulsive) exhibit similar neural activation tendencies, but differences exist in the magnitude of activation patterns in brain regions that are closely related to trust and decision making, such as the DLPFC, the insula cortex, and the caudate nucleus