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Transcript
Information Technology and Markets for Information Jon Zinman Dartmouth College January 8, 2010 How Might IT Transform Decisions, Markets, Outcomes? • • • • Consumer side Producer side Watchdog side Market level • Challenges • Next steps How Might IT Transform Consumer Decisions, Outcomes? • Reducing search/shopping costs – U.S. lit on this – Anything from LDCs? Consumer Side: Priming • “Priming” may become more cost-effective – Motivating example: baseline survey increases later demand for related investment behaviors (Zwane et al) – A subtle “nudge” – Do priming on larger scale with text messages? Consumer Side: Reminders • “Reminders” may be cost effective – Example: Karlan et al (2010): text reminders increase savings • Many unanswered questions remain – – – – Increase overall savings, financial health? Any perverse effects (e.g., borrowing to increase consumption)? Work for other healthy behaviors? Optimal timing, frequency, duration • E.g., do people “tune out” at some point? – Optimal content • Reminders and/or feedback on goal tracking – Strong defaults on these features? – How much customization optimal for consumer? Consumer Side: Goals & Plans • Reminders worked well on sample of people who had set goals, make plans • Can IT improve outreach on goal-setting, making effective plans (then sticking)? • Probably yes, where computers and smart phones are prevalent • Key here: testing the marketing and content of streamlined, fun decision aids – Trying to get this going with software startup in USA – Information vs. information overload – Goals vs. plans How Might IT Transform Producer Decisions, Outcomes? • Reduce search costs for market (e.g., price) information – Svensson and Yanagizawa (2009): Uganda farmers • Zitzewitz and Zinman (2009): iPhone app dramatically reduces deceptive advertising by ski resorts How Might IT Transform What Watchdogs (Can) Do? • Burstyn and Coffman (2009) text message reports to parents on kids’ school attendance • IPA: how can we use IT to audit human service NGOs more efficiently (partner = Global Giving) How Might IT Transform Market Outcomes? • Jensen (2007): access to price info via mobile phones increase fish market efficiency – Reduced waste – Reduced price dispersion (also Aker 2008) Challenges and Next Steps • R&D has really high value here – Very practical applications – Very weak body of evidence on what works, doesn’t and why • Wrinkle: “bad guys” not passive participants here – E.g., investments in obfuscation by firms who seek to deceive customers (Ellison and Ellison) • By my sense is that IT levels the playing field a bit by reducing the importance of fixed costs Consumer Side: Impulse Saving • Automating healthy behaviors – Probably most relevant for financial behavior, and where people have checking accounts • E.g., use mobile banking to make easy: – One-time setup of automated transfers from checking to savings – On-the-go transfers: “impulse saving” • Well-timed feedback/reminders probably key here • Use strong defaults here – Measuring the right outcomes key