CAREER: Designing Efficient Information Exchanges: A Program for Research and Teaching

Carnegie Mellon University, Pittsburgh PA

Investigators

Abstract

This CAREER proposal will investigate three key areas of online information exchange: the exchange of information about competing products, the exchange of information goods in peer-to-peer networks, and the exchange of ideas and opinions within online communities. Each area has a particular design characteristic that is underutilized in current information exchanges, but which can be used to improve the efficiency of online information provision and consumption. In the case of product information exchange, the PI will analyze the malleability of information display -- the ability to passively learn customer preferences and dynamically alter the assortment of information shown to customers based on their individual tastes and needs. In the case of peer-to-peer networks, the PI will analyze the malleability of incentive design -- the ability to easily change the incentives provided within information exchanges to achieve socially desirable outcomes. In the case of communities, the PI will analyze the malleabilty of social interactions -- how rich media interactions can change the organization of communities of discourse and the dissemination and persuasiveness of messages exchanged in these communities. This project will have a direct impact on the education of social science, economics and engineering students through course development at CMU. The PI has developed course modules and data exercises related to market efficiency, consumer surplus gains in Internet markets, and customer online behavior. A new course is proposed entitled, "Designing Efficient Electronic Markets." This course will include new modules on improving efficiency in Internet markets, designing online reputation systems, designing online collaborative filtering systems, designing a better shopbot, incentives to peer-to-peer networks, and efficient regulation of Internet markets. Each module will include a lecture on the relevant market and design issues and an exercise designed to statistically analyze available data and based on this analysis to propose technical solutions to improve market design.