Duration: 1:30:03

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Electronic markets are becoming more and more pervasive in our lives, but only little is known about the role that user interfaces play for the efficiency of these markets. How does the way we display market information to end-users and the set of choices we offer them influence overall economic efficiency? In this talk, we introduce a new research agenda on 'market user interfaces.' We propose a framework that models market users with cognitive costs that depend on the complexity of the market user interface. Based on this framework, we develop a general design methodology that takes users' error profiles and optimizes the market user interface for real users. We evaluate four design levers regarding their effect on economic efficiency: the number of choices offered, fixed vs. changing market prices, situation-dependent choice sets, and choice sets that are optimized for users' cognitive costs. We present preliminary results from an economics lab experiment involving 60 users, showing the importance of these design levers for electronic market design. Furthermore, we propose a novel market design that minimized users' cognitive costs: instead of balancing the market via price updates, we keep prices fixed over time and hide the market from a subset of users, depending on current supply and demand. Joint work with Kamal Jain, Eric Horvitz, Mary Czerwinski and Desney Tan