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Full Description
How tech companies like Google, Airbnb, StubHub, and Facebook learn from experiments in our data-driven world—an excellent primer on experimental and behavioral economics
Have you logged into Facebook recently? Searched for something on Google? Chosen a movie on Netflix? If so, you've probably been an unwitting participant in a variety of experiments—also known as randomized controlled trials—designed to test the impact of different online experiences. Once an esoteric tool for academic research, the randomized controlled trial has gone mainstream. No tech company worth its salt (or its share price) would dare make major changes to its platform without first running experiments to understand how they would influence user behavior. In this book, Michael Luca and Max Bazerman explain the importance of experiments for decision making in a data-driven world.
Luca and Bazerman describe the central role experiments play in the tech sector, drawing lessons and best practices from the experiences of such companies as StubHub, Alibaba, and Uber. Successful experiments can save companies money—eBay, for example, discovered how to cut $50 million from its yearly advertising budget—or bring to light something previously ignored, as when Airbnb was forced to confront rampant discrimination by its hosts. Moving beyond tech, Luca and Bazerman consider experimenting for the social good—different ways that governments are using experiments to influence or "nudge" behavior ranging from voter apathy to school absenteeism. Experiments, they argue, are part of any leader's toolkit. With this book, readers can become part of "the experimental revolution."
Contents
Preface
Part One: Breaking Out of the Lab
Chapter 1: The Power of Experiments
Chapter 2: The Rise of Experiments in Psychology and Economics
Chapter 3: The Rise of Behavioral Experiments in Policymaking
Part Two: Experiments in the Tech Sector
Chapter 4: From the Behavioral Insights Team to Booking.com
Chapter 5: #AirbnbWhileBlack
Chapter 6: eBay's $50 Million Advertising Mistake
Chapter 7: Deep Discounts at Alibaba
Chapter 8: Shrouded Fees at StubHub
Chapter 9: Market-level Experiments at Uber
Chapter 10: The Facebook Blues
Part Three: Experimenting for the Social Good
Chapter 11: Behavioral Experiments for the Social Good
Chapter 12: Healthy, Wealthy, and Wise
Chapter 13: The Behavior Change for Good Project
Chapter 14: The Ethics of Experimentation
Chapter 15: A Final Case for Experiments and Some Concluding Lessons
Notes
Index
