RISK CDT - Neural mechanisms of economic decision making during online purchasing

PLEASE APPLY ONLINE TO THE SCHOOL OF ENGINEERING, PROVIDING THE PROJECT TITLE, NAME OF THE PRIMARY SUPERVISOR AND SELECT THE PROGRAMME CODE "EGPR" (PHD - SCHOOL OF ENGINEERING)

This is a project within the multi-disciplinary EPSRC and ESRC Centre for Doctoral Training (CDT) on Quantification and Management of Risk & Uncertainty in Complex Systems & Environments, within the Institute for Risk and Uncertainty. The studentship is granted for 4 years and includes, in the first year, a Master in Decision Making under Risk & Uncertainty. The project includes extensive collaboration with prime industry to build an optimal basis for employability.

The number of online purchases on web-based platforms such as Amazon or eBay has greatly increased in previous years, not just for everyday use products (e.g., groceries) but also for luxury items and more complex goods such as health insurance.

Little is known about the behavioural and neural mechanisms underlying individual choices during online purchasing and how these differ from more traditional purchase decisions made in brick and mortar stores. We aim to combine the mathematical modelling of bidding behaviour during a simulated Vickrey auction and the methods of electroencephalography and eye-tracking to investigate the mechanisms that buyers employ when deciding to purchase a product. In simulated Vickrey auctions, we will explore the factors underlying bidding behaviour while manipulating the behaviours of several other bidders.

Using electrophysiological data acquired from a series of bidding events, we will evaluate the brain potentials associated with a decision to accept or reject a bid. Parameters of risk aversion and loss aversion will be also analysed and correlated with brain activation patterns. Electroencephalography will be used to assess the role of the dopaminergic neurons in contributing to brain responses to a loss or gain and manifesting in feedback-related negativity potentials. Brain activations associated with the valuation of different bids will be evaluated using eye fixation-related cortical potentials. Electrophysiological data will be combined with the mathematical models of decision making to predict individual choices in simulated auctions. In the final stage of the project, electroencephalographic and electrooculographic data will be collected in natural conditions using cutting-edge wireless electrophysiological technologies.

The project will identify the essential behavioural and neural components underlying economic decision making implemented by buyers during online purchasing. Results will help to inform buyers about advantages of different purchasing strategies and the risk factors that undermine optimal decision making during online purchasing.

The project will be carried out in collaboration with Unilever. Unilever is one of the world’s leading suppliers of fast-moving consumer goods and has a strong research base in the UK.

Candidates should have a background in one or more disciplines: mathematical psychology, decision making, game theory, or bioengineering. Please contact Dr Andrej Stancak with informal enquiries at [Email Address Removed].