A User-centric approach to ensure safe browsing in E-commerce through Behavioral Economics

Abstract

In the last few decades, there has been a drastic growth in the field of technology which has resulted in a significant impact on the increase in usage of the internet, mobile phones, computers, and so on. This rapid advancement of technology has dramatically transformed the trade and e-commerce sector which open a new window of opportunities and risk. A major issue faced by online consumers is information asymmetry. Along with that, fake reviews, misleading advertisements, and poor customer support often results in irrational decision-making. Behavioral Economics proposes that human behavior is not always rational. Individuals are often influenced by emotions, cognitive bias, and environmental consequences. These biases lead to irrationality. Addressing these challenges our study explores the application of Behavioral Economics theories to mitigate these challenges and guide users toward more rational decisions in the context of E-Commerce using Behavioral Economics. We created a Google Chrome browser extension that uses Behavioral Economics ideas to lower information asymmetry as people cannot physically judge products along with integrating Bayesian Average and exponential time decay algorithms. The effectiveness of this research is evaluated through analysis of user behavior combined with hypothesis testing and semi-structured interview methods. In this respect, we focused on some Behavioral Economics (B.E) theories that drive human decision-making tendency, and implemented those into a chrome browser extension in order to investigate whether B.E reduces information gap. Along with this, we will investigate whether humans are able to make informed decisions for safe browsing in the e-commerce sector using the Chrome extension or not.