Why Is It So Hard to Resist Splurging on Online Shopping?
Drawing on the theory of information social influence, Fu et al. (2020) developed a model to underpin how consumers process and make sense of information in the context of online shopping. In particular, this recent study particularly reflects on the affordances of social media platforms in facilitating the sociality and information exchanges among customers. The […]
Bayes’ Rule in COVID-19 Breakthroughs
In July 2021, the amount of Covid-19 cases increased exponentially due to the rise in the Delta variant. The Delta variant is highly transmissible in comparison to other variants due to the high replication rate. Moreover, the Delta variant can even impact those who are unvaccinated. For example, a case has shown that in Massachusetts […]
Hesitation and Herding
https://news.osu.edu/when-to-break-from-the-herd-to-make-a-better-decision/ In this article, Jeff Grabmeier describes an experiment performed by Ian Krajbich, which adds a psychological element to the herding experiment we discussed in class. Participants were presented with a bag of 3 balls each labeled A or B, and were told to guess whether the bag contained a majority of A or B […]
An Application of Bayes’ Rule in Manufacturing Engineering
In the field of manufacturing engineering, one of the most important aspects that is often not considered is the tool wear. When an assembly is undergoing high volume production, it is not uncommon for the same set of cutting tools to be used to machine hundreds of parts during a single operation out of metal; […]
Information Cascades in Social Media
The concept of information cascades and how easily one can be created based on very limited information is something that we have discussed extensively in lecture. We have shown how the first few people to react to something can largely determine the whole’s reaction. In the article “Information Cascades in Social Media in Response to […]
Is the Web Structure Still Bow-Tie?
The Bow-Tie model of the web structure discussed in class was proposed by Broder et al. in a 2000 paper. [1] It models the websites and pages in the World Wide Web as a bow-tie structure with most pages in either IN, OUT, or the SCC component. SCC represents a large strongly connected component where […]
Information cascades and online movie rating
Previously, we discussed the information cascades theory and how easily the model can be formed based on very little information. It surely showed the power of herding effect – individuals converge to a uniform social behavior. (Banerjee 1992, Bikhchandani et al. 1998) However, we also mentioned that the cascades can be very fragile: if anyone […]
Informational Cascades and Related Thoughts on Local Rationality
In Sushil Bikhchandani, David Hirshleifer, Ivo Welch’s paper A Theory of Fads, Fashion, Custom, and Cultural Change as Informational Cascades (1992), and Learning from the Behavior of Others: Conformity, Fads, and Informational Cascades (1998), informational cascade is explained as a model with systemic fragility which to certain extent accounts for both social conformities and changes. […]
Bayes’ Rule and COVID Vaccines
The article begins by giving the statistic that 58% of Israel’s COVID-19 hospitalizations are vaccinated individuals, and says that this suggest that the vaccination may be ineffective. Following this, the author Gary Smith writes that making this assumption off of that statistic is incorrect. He then gives an example of how statistics can be misleading […]
Is Google’s Ad Market as Complex as the Stock Market?
For my second blog post, I selected an article titled “Should Google’s Ad Market Be Regulated Like the Stock Market?” By Gilad Edelman. Edelman begins by making a comparison between the stock market and the online advertising market. To explain the complexity of online advertising, the author claims that the digital marketplace makes the NASDAQ […]
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