Behavioral Economics in the Digital Economy: Digital Nudging and Interface Design

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    Ethical Guidelines for the Construction of Digital Nudges
    ( 2020-01-07) Meske, Christian ; Amojo, Ireti
    Under certain circumstances, humans tend to behave in irrational ways, leading to situations in which they make undesirable choices. The concept of digital nudging addresses these limitations of bounded rationality by establishing a libertarian paternalist alternative to nudge users in virtual environments towards their own preferential choices. Thereby, choice architectures are designed to address biases and heuristics involved in cognitive thinking. As research on digital nudging has become increasingly popular in the Information Systems community, an increasing necessity for ethical guidelines has emerged around this concept to safeguard its legitimization in distinction to e.g. persuasion or manipulation. However, reflecting on ethical debates regarding digital nudging in academia, we find that current conceptualizations are scare. This is where on the basis of existing literature, we provide a conceptualization of ethical guidelines for the design of digital nudges, and thereby aim to ensure the applicability of nudging mechanisms in virtual environments.
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    Understanding User Preferences of Digital Privacy Nudges – A Best-Worst Scaling Approach
    ( 2020-01-07) Schöbel, Sofia ; Barev, Torben ; Janson, Andreas ; Hupfeld, Felix ; Leimeister, Jan Marco
    Digital nudging in privacy has become more important to protect users of information systems while working with privacy-related data. Nudging is about altering a user’s behavior without forbidding any options. Several approaches exist to “nudge” users to change their behavior. Regarding the usage of digital privacy nudges, research still has to understand the meaning and relevance of individual nudges better. Therefore, this paper compares the preferences of users for different digital nudges. To achieve this goal, it presents the results of a so-called best-worst scaling. This study contributes to theory by providing a better understanding of user preferences regarding design variations of digital nudges. We support practitioners by giving implications on how to design digital nudges in terms of user preferences.
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    Nudging Toward the Herd: Understanding the Multidimensional Role of Perceived Uncertainty
    ( 2020-01-07) Vedadi, Ali ; Greer, Timothy
    Understanding how herd behavior phenomenon occurs IS context is important because it influences many choice decisions, is the main reason for some adoption decision anomalies, and explains the reasons behind the rapid rise or collapse of various technology fads. Perceived uncertainty is a key factor that triggers herd mentality (i.e. through imitation) and despite its influential role, the IS literature has not adequately conceptualized and operationalized this broad concept. This research aims to contribute to the literature by decomposing perceived uncertainty to its dimensions and analyzing the influence of each dimension on triggering individuals’ herd mentality.
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