"Humans are Predictably Irrational"

Richard H.Thaler. Economics Nobel Laureate 2017

"Humans are Predictably Irrational"

Richard H.Thaler. Economics Nobel Laureate 2017


Experiment with Experimental Economics

Feelings, incentives, and the decision-making atmosphere of 'real people'


Imagine an ideal world

According to the economic theory, decisions should be made by the formula cost-benefit. We should always make optimal decisions. Nevertheless, people are human and are influenced by other factors such as feelings and emotions. Identifying, measuring and optimising those factors is the aim of behavioural experimental economics. Daniel Kahneman, Prize in Economic Sciences in 2002, was a pioneer on the utilization of this innovative science. Nowadays, Richar H. Thaler is the main figure since he has been awarded the Nobel Price in 2017 for his work on behavioural economics. 

People do not do what they say. Feelings

People act in an emotional way, focusing on some aspects and forgetting about others. Neuroscience explains this phenomena throughout heuristics, defined as subconcious and emotional thoughts producing automatic decision making process.

> See examples for heuristics and cognitive biases

Think fast. Intuition

These mistakes are not the consequence of brain failures. On the contrary: as far as it is impossible to use all available information  people make decisions according to their intuition. This intuition provides shortcuts in order to save time and effort to your brain.

Behavioural Economics

Behavioural Economics does not aim to teach how to make good decisions. What it does is just to create the most appropiate environment for the user to make the best decision. This is called arquitecture choice. Behaviuoral economics aims to introduce small changes in the decision process that will end up in big results. The combination of behavioural economics together with experimental economics and game theory allow us not only to validate the strategy but also to make the economectric analysis. It enables us to make improvements and sharp the strategy till the highest rate of efficiency .

"People are predictably irrational"

Experiment with their irrationality

Take out uncertainty 

Meet the result of your strategy before its implementation. Analyse real behaviour and forget about theoretical and hypothetical answers. Eliminate the impact on brand image.

Reduce investment

Allocate resources to key factors influencing users and customers. Identify inefficient strategies and stop wasting money on the development of unsuccessful products and services.

Optimize strategies and results

The final report will identify key factors and rate of impact. This will enable your organization to build the best strategy to meet the goals.


Our Projects

From the initial idea to the perfect strategy


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Initial diagnosis

 

A team of economists, engineers, mathematicians and marketers will analyse the requirements, ideas and objectives of the customer. The objective of this first stage is to clarify the questions that the projects need to answer. Key variables to be analysed and the sample pool are also defined at this stage.

LINEEX Experimental Economics Laboratory User Experience

Experimental Design

LINEEX develops the most appropiate technology and environment according to the needs of the project. The experiment is developed througout a controlled environment composed by different scenaries. At every scene, LINEEX introduces small changes aiming to modify behaviour of those who will make decisions. They can be implemented via the local Laboratory, online or mobile depending on the location of the target to be analysed.

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Incentive Design

 

The research team will define incentives and will align them with the pool preferences. This is the methodology of experimental economics which guarantees real behaviour. LINEEX does not develop pools or focus groups just because there are many evidences that people do not do what thay say they will do. Since people lie, it is necessary to link their behaviour with a future status.

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Impact test and strategy validation

 

Once we have the experimental design, subject pool and incentives, it is time to develop a behavioural test (experiments) in order to collect the data. This will provide the appropiate information to validate the strategy.

Futhermore, the test will show the rate of impact depending on the targeted audience.

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Final report

(1) High success - the strategy works and it is ready to be implemented.

(2)  Low successs - the strategy meets some of the objectives but not all of them. It needs to be redesigned and optimised.

(3) No success. The strategy does not meet any of the proposed objectives. In case of implementation all resources invested will be wasted.

Having this information, clients will be able to implement/design the strategy which best aligns with the organization objectives.


LINEEX Services


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UX / USER EXPERIENCE

User experience optimization

 

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POLICY MAKING

Measuring impact of new policies 

 

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BRANDING AND PRODUCT DESIGN

Identifying the best mix of atributes for a product

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PRICING. WILLINGNESS TO PAY 

Price setting according to perceived value

 

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COMMUNICATION

Defining types of messages for goals achievement

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CONSUMER LOYALTY

Analysing commercial strategies 

 

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ONLINE BEHAVIOUR

Modifying online behaviour

 

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HUMAN RESOURCES

Optimizing organizational performance

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CONVERSION FUNNEL

Raise the rate of converted leads

 

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MARKET ANALYSIS

Target identification

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CONTACT WITH OUR TEAM
lineex@uv.es  
+34 96 162 54 09
C/Serpis 29, Valencia, Spain 
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