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When IT Service Adoption Meets Behavioral Economics: Addressing Present Bias Challenges

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Conceptual Modeling (ER 2022)

Part of the book series: Lecture Notes in Computer Science ((LNCS,volume 13607))

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Abstract

In an ideal world, IT service adoption is derived from the value it gives to the different stakeholders. However, in the real world, human behavior may induce sub-optimal decision making that raises barriers to the optimal adoption of the service. In this paper, we focus on a specific and common behavioral phenomenon – present bias – people’s tendency to prefer immediate gratification at the expense of future outcomes. We start by conceptualizing the considerations for selecting the economically-preferred IT service, from a list of alternatives. Then, we devise an approach for assessing the present values of the alternatives from the viewpoints of the various stakeholders. Lastly, we evaluate our approach using a case study of service adoption in a multinational technology enterprise.

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Notes

  1. 1.

    Although not a homogeneous business unit, the employees are the ones who receive and use the vehicles and thus an important stakeholder group with similar characteristics to a certain extent.

  2. 2.

    We assume matrix representations of all mappings.

  3. 3.

    β′i can be experimentally identified for each business unit. We plan to address this part in future research.

  4. 4.

    An empirical analysis on the significant impact switching costs exert on behavior may be found at [15].

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Acknowledgement

This research is supported by the Israel Science Foundation under grant agreements 1065/19.

Author information

Authors and Affiliations

  1. Information Systems Department, University of Haifa, Haifa, Israel

    Iris Reinhartz-Berger & Alan Hartman

  2. Economics Department, University of Haifa, Haifa, Israel

    Doron Kliger & Eliad Amsalem

Authors
  1. Iris Reinhartz-Berger
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  2. Doron Kliger
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  3. Eliad Amsalem
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  4. Alan Hartman
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Corresponding author

Correspondence to Iris Reinhartz-Berger .

Editor information

Editors and Affiliations

  1. University of Geneva, Carouge, Switzerland

    Jolita Ralyté

  2. The University of Texas at Arlington, Arlington, TX, USA

    Sharma Chakravarthy

  3. IIIT Delhi, New Delhi, India

    Mukesh Mohania

  4. University of Skövde, Skövde, Sweden

    Manfred A. Jeusfeld

  5. International Institute of Information Technology Gachibowli, Hyderabad, India

    Kamalakar Karlapalem

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Reinhartz-Berger, I., Kliger, D., Amsalem, E., Hartman, A. (2022). When IT Service Adoption Meets Behavioral Economics: Addressing Present Bias Challenges. In: Ralyté, J., Chakravarthy, S., Mohania, M., Jeusfeld, M.A., Karlapalem, K. (eds) Conceptual Modeling. ER 2022. Lecture Notes in Computer Science, vol 13607. Springer, Cham. https://doi.org/10.1007/978-3-031-17995-2_12

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  • DOI: https://doi.org/10.1007/978-3-031-17995-2_12

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  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-031-17994-5

  • Online ISBN: 978-3-031-17995-2

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