Last weekend saw the annual Startuponomics in San Francisco, organized by the investment fund of Eric Schmidt Innovation Endeavors. The goal of the conference was to give startups the understanding of how their customers make decisions and how they can help influence these decisions by implementing behavioral economic techniques.
Some of the fantastic speakers this year included: Dan Ariely, a professor of psychology and behavioral economics at Duke University, Michael Norton, professor of business administration at Harvard Business School, Rebecca Ratner, Associate Professor at the University of Maryland and Phil Libin, CEO of Evernote, and many others.
So what exactly is “behavioral economics” and how does it relate to start-ups?
Behavioral Economics is defined as:
“The effects of social, cognitive, and emotional factors on the economic decisions of individuals and institutions and the consequences for market prices, returns, and the resource allocation”
If you want to find out more about this concept, check out the lecture below given by Dan Ariely.
During the two-day conference, the participants in San Francisco took part in a variety of workshops and one on one sessions, while those attendees who were based in the Google office’s in Israel took part in the conference and events via live feed and were able to ask questions to professor of behavioral economics Dan Ariely.
The conference featured some of the hottest startups out there today. From companies focused on big data like Kaggle, to education focused startups like Desmos as well as the newest darling of the startup world Soluto. Included in the soon-to-be household names that were in attendance was BillGuard; a great startup that identifies hidden charges, as well billing errors and unwanted subscriptions. Other notable startups in attendance included Life360, Kissmetrics – analytics, Shaker and Gympact.
These companies represent the next generation in young startups that will become household names in the very near future. Their attendance at StartupOnomics made the conference an unforgettable experience.
The concept of behavioral economics and how start-ups can utilize these strategies is ground breaking and is surely to be next frontier of the hi-tech entrepreneurial revolution that we are currently experiencing. Those who were able to attend, both via video feed and on the ground in San Francisco, were truly treated to something they will never forget.
A great blog post from “Anands blog” focused on the presentation given by Dan Ariely really gives insight into the attendee experience, it is a must read.
How do you think behavioral economics could be used to propel a startup towards success? Are there any other economic strategies that you think would be beneficial?
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