Cognitive bias in network services

Rade Stanojevic, Vijay Erramilli, Konstantina Papagiannaki

Research output: Chapter in Book/Report/Conference proceedingConference contribution

5 Citations (Scopus)

Abstract

The assumption of rationality is fundamental to large part of network economics literature. In this paper, we use a simple definition of rationality based on economic self-interest and test for such behavior using real data on how users purchase and consume mobile network services. If users acted in their best (optimal) interest, then they would opt for the tariff that best suits their demands. However, that need not be the case, as users can fall prey to biases that can lead them to make seemingly sub-optimal choices. Such biases are hard to characterize and in this paper we empirically study how end-users purchase and use network services. We find that most customers choose sub-optimal tariffs, and that median and mean overpayment is 26% and 37%, respectively, of the user optimal tariff bill. Additionally, we observe not only that perception of traffic usage biases the tariff choice but also that the choice of tariff biases traffic usage: the traffic demand grows substantially when users switch from pay-as-you-go to a bundle tariff, and that traffic demand on a bundle is not uniformly spread across time.

Original languageEnglish
Title of host publicationProceedings of the 11th ACM Workshop on Hot Topics in Networks, HotNets-11
Pages49-54
Number of pages6
DOIs
Publication statusPublished - 2012
Externally publishedYes
Event11th ACM Workshop on Hot Topics in Networks, HotNets 2012 - Redmond, WA, United States
Duration: 29 Oct 201230 Oct 2012

Other

Other11th ACM Workshop on Hot Topics in Networks, HotNets 2012
CountryUnited States
CityRedmond, WA
Period29/10/1230/10/12

Fingerprint

Economics
Wireless networks
Switches

Keywords

  • Behavioral economics
  • Cognitive bias
  • Rationality
  • Tari

ASJC Scopus subject areas

  • Computer Networks and Communications

Cite this

Stanojevic, R., Erramilli, V., & Papagiannaki, K. (2012). Cognitive bias in network services. In Proceedings of the 11th ACM Workshop on Hot Topics in Networks, HotNets-11 (pp. 49-54) https://doi.org/10.1145/2390231.2390240

Cognitive bias in network services. / Stanojevic, Rade; Erramilli, Vijay; Papagiannaki, Konstantina.

Proceedings of the 11th ACM Workshop on Hot Topics in Networks, HotNets-11. 2012. p. 49-54.

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Stanojevic, R, Erramilli, V & Papagiannaki, K 2012, Cognitive bias in network services. in Proceedings of the 11th ACM Workshop on Hot Topics in Networks, HotNets-11. pp. 49-54, 11th ACM Workshop on Hot Topics in Networks, HotNets 2012, Redmond, WA, United States, 29/10/12. https://doi.org/10.1145/2390231.2390240
Stanojevic R, Erramilli V, Papagiannaki K. Cognitive bias in network services. In Proceedings of the 11th ACM Workshop on Hot Topics in Networks, HotNets-11. 2012. p. 49-54 https://doi.org/10.1145/2390231.2390240
Stanojevic, Rade ; Erramilli, Vijay ; Papagiannaki, Konstantina. / Cognitive bias in network services. Proceedings of the 11th ACM Workshop on Hot Topics in Networks, HotNets-11. 2012. pp. 49-54
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