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Sequential and myopic: On the use of feedback to balance cost and utility in a simulated electricity efficiency task

ABSTRACT While there is extensive research on feedback, little research is aimed at the use of feedback to optimise conflicting goals. A task modelled after In Home Displays for providing feedback about electricity cost was designed to investigate the effects of feedback frequency, detail, and stability, when participants try to balance cost and utility. Frequent feedback proved to be advantageous in a deterministic system, but feedback aggregated over time was advantageous in a system with noisy feedback. Surprisingly, performance was better with noisy feedback, where the probabilism, in effect, acted as a filter, highlighting the applications that are most important for the cost and the utility. Computational modelling suggested that the best-fitting model assumes that the participants are sequential, considering one goal at a time, first satisfying the cost budget, only thereafter trying to maximise the utility, and reflexive, myopically responding primarily to the feedback explicitly available on a given trial.