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Framing Choice Architectures

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Big Data, Databases and "Ownership" Rights in the Cloud

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Abstract

This chapter is about cloud architectures , freedom of choice , and the legitimate scope of cloud brokers in softly nudging end-users and cloud providers—as a new form of soft paternalism —that can help them make better decisions without coercing or neglecting their choices . I attempt to examine these issues by taking into account the recent theories within behavioral law and economics , which are steadily on the rise and increasingly relevant as a point of reference in policy-making and regulation over the past decade. In this regard, behavioral economics offers a normative framework, which helps us better understand the pitfalls of the decision-making process.

“We are all choice architects now!” (Stewart 2015, p. 78) (The Institute of Practitioners in Advertising).

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Notes

  1. 1.

    See, generally, Jolls et al. (1998, pp. 1471–1550).

  2. 2.

    Tversky and Kahneman (2004, pp. 203–220).

  3. 3.

    Viale (2012, p. 25).

  4. 4.

    About “heuristics ” and “biases ” see Heukelom (2014, pp. 71–96), Gilovich et al. (2002) (eds), Kahneman et al. (1982) (eds).

  5. 5.

    Safire (2004, p. 242).

  6. 6.

    Safire (2004, p. 242).

  7. 7.

    Angner and Loewenstein (2016).

  8. 8.

    See, generally, Zeiler and Teitelbaum (2015) (eds).

  9. 9.

    Minton and Kahle (2013).

  10. 10.

    See, i.e., Jolls et al. (1998, pp. 1471–1550).

  11. 11.

    In the United Kingdom for instance, the Prime Minister David Cameron established a “Behavioral Insights Team” (Cabinet Office), with the specific objective of including the psychological analysis of human behavior into policy-making initiatives in various areas such as anti-smoking, energy efficiency, consumer protection, organ donation, etc. See Behavioral Insights Team, [online]. Available at: http://www.behaviouralinsights.co.uk. Accessed 10 May 2019. See also Wright (2014). In the United States, the Obama administration has created a team in 2013 in order to do empirical research of behavioral sciences. On September 2015, President Obama signed an executive order, which encouraged federal government agencies to use behavioral science insights to better understand and serve the American people. Executive agencies are invited to “nudge” people to make better decision by means of reminders, notifications, warnings and reframing citizens’ choices. See Executive Order—Using Behavioral Science Insights to Better Serve the American People, The White House, Office of the Press Secretary, (September 15 2015), [online]. Available at: https://obamawhitehouse.archives.gov/the-press-office/2015/09/15/executive-order-using-behavioral-science-insights-better-serve-american. Accessed 10 May 2019. In the European Union, the Directorate-General for Health and Consumers has also shown some interest to focus on behavioral economics. See Consumer Policy Toolkit, Org. For Econ. Cooperation & Dev., [online]. Available at: https://www.oecd.org/sti/consumer/consumer-policy-toolkit-9789264079663-en.htm. Accessed May 10 2019. See, i.e., the “Green Behavior” report from the European Commission . See Sunstein (2014, pp. 33–36).

  12. 12.

    World Development Report (2015).

  13. 13.

    The Economist (2006).

  14. 14.

    See generally, Munro (2009).

  15. 15.

    Simon (1972, p. 162), Pomerol (2012, pp. 70 and 71), Lahti (2010, p. 35), Simon (1998, pp. 270–274).

  16. 16.

    As Herbert Simon pointed out: “Human rational behavior (and the rational behavior of all physical symbol systems) is shaped by a scissors whose two blades are the structure of task environments and the computational capabilities of the actor.” See Simon (1990, p. 7).

  17. 17.

    Clark et al. (2012), preface, Reb et al. (2014, p. 14), Gigerenzer (2000, p. 125).

  18. 18.

    Gigerenzer and Selten (2002, p. 4). See, also, generally, Simon (1955, pp. 99–118), Simon (1984).

  19. 19.

    Viale (2012, p. 25).

  20. 20.

    Jolls (2004, pp. 1–3).

  21. 21.

    Kahneman (2011, p. 98).

  22. 22.

    Kahneman (2011, pp. 97 and 98). The etymology of the word “heuristics ” comes from Greek “heureka,” which literally means, “I have found (it)” from the verb “heuriskein” (to find). This expression became famous as it was supposed to be shouted by Archimedes (c. 287–212 B.C.E.) when he found the solution to a scientific problem. See: Online Etymology Dictionary [online]. Available at: http://www.etymonline.com/index.php?term=eureka. Accessed May 10 2019, Utts (2014, p. 348).

  23. 23.

    See, generally, Sunstein (2000) (ed).

  24. 24.

    As Sigal Ben-Porath pointed out, “choice does seem like an appropriate, straightforward solution to the shortcomings of the alternative, choice -less vision of the predestined life.” See Ben-Porath (2010).

  25. 25.

    Heukelom (2014, pp. 1–10 and 168).

  26. 26.

    See Thaler and Sunstein (2003).

  27. 27.

    Oxymoron is “a figure of speech by which a locution produces an incongruous, seemingly self-contradictory effect.” For example: “cruel kindness”, [online]. Available at: http://dictionary.reference.com/browse/oxymoron. Accessed 10 May 2019. According to the Merriam-Webster dictionary, oxymoron is: “a combination of words that have opposite or very different meanings,” [online]. Available at: http://www.merriam-webster.com/dictionary/oxymoron. Accessed May 10 2019.

  28. 28.

    Thaler and Sunstein (2003, pp. 1–3). But see White (2013). White argues generally against the idea of paternalistic nudges by the government and makes a positive claim in favor of individual choice and autonomy.

  29. 29.

    The terms System 1 and System 2 were first coined by Stanovich and West and will be used along this work. See Stanovich and West (2000, pp. 645–665).

  30. 30.

    Corrales Compagnucci and Jurčys (2016, pp. 533–536).

  31. 31.

    See Tversky and Kahneman (1974, pp. 1124–1131).

  32. 32.

    Kahneman and Tversky (1979, pp. 263–292).

  33. 33.

    See generally, Kirchgaessner (2000).

  34. 34.

    Holt (2011).

  35. 35.

    The term “homo economicus” as we understand it conceptually today, was first coined by John Stuart Mill in his Essays of Some Unsettled Questions of Political Economy (1844) and in his Principles of Political Economy. Noteworthy, this concept permeated the academic literature and became notorious as a pejorative term by Mill’s adversaries. See Rodriguez-Sickert (2009, p. 223).

  36. 36.

    Catino (2013, p. 100). See, also, generally, Reason (1990), Jackman and Miller (2007, p. 20).

  37. 37.

    Kahneman (2003, p. 698).

  38. 38.

    Kahneman (2003, p. 698).

  39. 39.

    Kahneman (2003, p. 698), Kahneman (2011, pp. 20–26).

  40. 40.

    Kahneman (2003, p. 698), Kahneman (2011, pp. 20–26). See also Stanovich (2010). In this book, Stanovich established the difference between rationality and intelligence and suggests that some individuals are closer to System 1 and some others are closer to System 2 . He also established a distinction of two parts of System 2 , what he calls “two separate minds.” According to him, System 2 has a dual-process and must be divided into the “reflective mind” and the “algorithmic mind.” According to Stanovich’s concept, superficial or “lazy” thinking is a flaw in the reflective mind, and explains how individuals can behave sometimes irrationally. See also Kahneman (2011, pp. 48–49). In evolutionary terms, System 1 is older than System 2 . It relates to our animal instincts and is broken down in a subset of systems that include both our innate abilities and “domain-specific knowledge” learnt from a “domain-general learning” system. System 2 is more recent and belongs only to humans. It allows abstract and hypothetical ways of reasoning and thinking. It is linked to language and intelligence but is limited in memory capacity. See Evans (2003, pp. 454–459).

  41. 41.

    Raisinghani et al. (2015, p. 188).

  42. 42.

    Businessballs.com, Nudge Theory [online]. Available at: http://www.businessballs.com/nudge-theory.htm. Accessed May 10 2019.

  43. 43.

    English Collins Dictionary, Nudge [online]. Available at: http://www.collinsdictionary.com/dictionary/english/nudge. Accessed May 10 2019.

  44. 44.

    Oxford Dictionary, Nudge, [online]. Available at: http://www.oxforddictionaries.com/es/definicion/ingles_americano/nudge. Accessed May 10 2019.

  45. 45.

    Thaler and Sunstein (2009, p. 6).

  46. 46.

    Willis (2015).

  47. 47.

    See generally, Jamson (2013, p. 298), Avineri (2014); Nudge.org, What if a Speed Limit Sign Told You the Most Efficient Speed to Drive? [online]. Available at: http://nudges.org/2009/06/25/what-if-a-speed-limit-sign-told-you-the-most-efficient-speed-to-drive/. Accessed 10 May 2019; Nudge.org, Choice Architecture for the Road [online]. Available at: https://nudges.wordpress.com/2008/06/05/choice-architecture-for-the-road/. Accessed May 10 2019.

  48. 48.

    Nudges .org, 2008, Another Visual Trick to Nudge Drivers to Slow Down [online]. Available at: http://nudges.org/?s=lake+shore+drive. Accessed May 10 2019.

  49. 49.

    Thaler and Sunstein (2009, p. 3).

  50. 50.

    Thaler and Sunstein (2009, p. 3), Sunstein (2014, pp. 12, 25, 91, and 164).

  51. 51.

    Behavioral Economics is expanding to different fields in addition to law. See Heshmat (2011), introduction.

  52. 52.

    Sunstein (2014, pp. 11, 12, 15, 25, and 28).

  53. 53.

    Sunstein (2014, pp. 1–221).

  54. 54.

    Thaler and Sunstein (2009, p. 20), Clark (2010, p. 176), Evans-Pritchard (2013), Sommer (2009).

  55. 55.

    Wallace (2008).

  56. 56.

    Lindberg and Svensson (2010, p. 13).

  57. 57.

    Sunstein (2014, p. 25).

  58. 58.

    Felin (2014, p. 3).

  59. 59.

    Ramanathan et al. (2009, p. 171), Eppinger and Browning (2012, p. 7), Abraham et al. (2012, p. 116).

  60. 60.

    See Bloomberg (2013, p. 12).

  61. 61.

    Clements et al. (2010, p. 19), Perry and Wolf (1992, p. 44).

  62. 62.

    See generally, Jansen and Bosch (2005, pp. 109–120).

  63. 63.

    Sunstein (2014, pp. 1–30 and 179).

  64. 64.

    Ben-Porath (2010, p. 11).

  65. 65.

    Heshmat (2015, p. 243).

  66. 66.

    Detels et al. (2015, p. 782).

  67. 67.

    See John et al. (2013, p. 104), Quigley and Stokes (2015, p. 64), Thaler (2009), Hamilton and Zufiaurre (2014, p. 18).

  68. 68.

    Leitzel (2015, p. 137).

  69. 69.

    Shafir (2013, p. 496).

  70. 70.

    Cahn (2013, p. 148).

  71. 71.

    Zamir (2015, p. 103). See, also, generally, Davidai et al. (2012, pp. 15201–15205).

  72. 72.

    Sunstein (2014, pp. 28, 73, 74, 77, and 149).

  73. 73.

    Biddle et al. (2015, p. 377).

  74. 74.

    See Dold (2016, p. 50), Blythe (2013, p. 426).

  75. 75.

    Biddle et al. (2015, p. 377).

  76. 76.

    See Le Grand and New (2015, pp. 1–3), Van Aaken (2015, p. 88).

  77. 77.

    Abbots and Lavis (2016, p. 155).

  78. 78.

    Gigerenzer (2015, pp. 361 and 362).

  79. 79.

    Sunstein (2014, p. 28).

  80. 80.

    Mill (1859, pp. 21 and 22).

  81. 81.

    See, generally, Brown (1972, pp. 133–158), Perry (1988, p. 92), Riley (2015, p. 11).

  82. 82.

    For more details on “behavioral market failures ” and default rules as good nudging techniques, see Sunstein (2015, pp. 206 and 218).

  83. 83.

    Sunstein (2014, pp. 63–72).

  84. 84.

    White (2016, p. 26), Prinz (2013, p. 182).

  85. 85.

    Bishop (2009, p. 296).

  86. 86.

    Tanner (2007, p. 200), Hartley (2012, p. 70), Angner (2016, p. 264).

  87. 87.

    See, generally, Jackson (2006, pp. 68 and 69).

  88. 88.

    Sunstein (2014, pp. 63–99).

  89. 89.

    Sunstein (2014, pp. 66–99 and 119–158).

  90. 90.

    In this section, the basis for nudges in SLAs are inferred to be similar in certain aspects to other kind of nudges explained by Cass Sunstein . See Sunstein (2013a, pp. 38 and 39). See, also, generally, Minton and Kahle (2013), Thaler et al. (2010).

  91. 91.

    Gilovich et al. (2002, p. 3). See also Hardman (2009, p. 24), Kahneman et al. (1982, p. 201).

  92. 92.

    Tversky and Kahneman (1973, pp. 207 and 208).

  93. 93.

    Kahneman (2011, p. 98).

  94. 94.

    Kahneman (2011, p. 98).

  95. 95.

    Kahneman (2011, pp. 97–104).

  96. 96.

    Contract Clarity, Thinking Fast and Slow for Contracts—part 1, [online]. Available at: http://contractclarity.co.uk/articles/thinking-fast-and-slow-for-contracts-part-1/. Accessed May 10 2019.

  97. 97.

    Contract Clarity, Thinking Fast and Slow for Contracts—part 1, [online]. Available at: http://contractclarity.co.uk/articles/thinking-fast-and-slow-for-contracts-part-1/. Accessed May 10 2019.

  98. 98.

    See Djemame et al. (2011, p. 119).

  99. 99.

    Kahneman (2011, p. 4).

  100. 100.

    Berman (2012). But see Devlin (2012). Berman actually refers to how the Big Data phenomenon can help us to reduce our biases taking into account the advanced technologies present in the new database systems. Contrary to this view, Devlin points out that Big Data certainly can detect more patterns and analyze statistics more accurately, however, humans still need the recognize these patterns and make a choice . As an analogy, I take the Big Data example and I refer to the risk assessment model that I will further explain in Chap. 9.

  101. 101.

    Djemame et al. (2011, p. 119).

  102. 102.

    Sunstein (2015, preface, pp. 95, 105, and 192).

  103. 103.

    See Iyengar and Lepper (2000, pp. 995–1006). In this empirical research, the authors challenged the assumption that the more choice , the better. In three different experiments, they arrived to the conclusion that people are more likely to choose or buy something when limited choices are available. For example, it is easier to choose and buy jam or chocolate from a limited array of 6 options rather than a more extensive selection of 24 or 30 choices.

  104. 104.

    Sunstein (2015, preface, pp. 27, 36, and 145).

  105. 105.

    Sunstein (2013b, p. 11).

  106. 106.

    Thaler et al. (2013, p. 430).

  107. 107.

    Sunstein (2015, preface, pp. 6 and 104).

  108. 108.

    OPTIMIS is an open source toolkit designed to help cloud service providers to build and run applications in the cloud. New features that include the clarification of database rights and “ownership” rights of data have been implemented. The toolkit has been integrated into the OpenNebula Ecosystem and the Infrastructure-as-a-Service cloud computing project OpenStack, [online]. Available at: https://opennebula.org/the-optimis-toolkit-is-now-available-in-the-opennebula-catalog/. Accessed May 10 2019.

  109. 109.

    See, generally, Sunstein (2015, pp. 9 and 139).

  110. 110.

    Sunstein (2015, pp. 12 and 13).

  111. 111.

    See, generally, Lessig (2006).

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    Dr. Marcelo Corrales Compagnucci

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Corrales Compagnucci, M. (2020). Framing Choice Architectures. In: Big Data, Databases and "Ownership" Rights in the Cloud. Perspectives in Law, Business and Innovation. Springer, Singapore. https://doi.org/10.1007/978-981-15-0349-8_7

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