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Arthur T Knackerbracket has found the following story:

The study, based on research conducted at Harvard Business School and published in the Journal of Consumer Research, is an inquiry into the tradeoffs between transparency and persuasion in the age of the algorithm. Specifically, it examines what happens if a company reveals to people how and why they've been targeted for a given ad, exposing the algorithmic trail that, say, inferred that you're interested in discounted socks based on a constellation of behavioral signals gleaned from across the web. Such targeting happens to virtually everyone who uses the internet, almost always without context or explanation.

In the Harvard study, research subjects were asked to browse a website where they were presented with various versions of an advertisement - identical except for accompanying text about why they were being shown the ad. Time and time again, people who were told that they were targeted based on activity elsewhere on the internet were turned off and became less interested in what the ad was touting than people who saw no disclosure or were told that they were targeted based on how they were browsing the original site. In other words, if you track people across the internet, as Facebook routinely does, and admit the fact to them, the transparency will poison the resulting ads. The 449 paid subjects in the targeting research, who were recruited online, were about 24 percent less likely to be interested in making a purchase or visiting the advertiser if they were in the group that was told they were tracked across websites, researchers said.

In a related research effort described in the same study, a similar group of subjects was 17 percent less interested in purchasing if they had been told they'd been targeted for an advertisement based on information that we inferred about you, as compared to people who were told they were targeted based on information they themselves provided or who were told nothing at all. Facebook makes inferences about its users not only by leveraging third-party data, but also through the use of artificial intelligence.

It's easy to see the conflict this represents for a company recently re-dedicated to transparency and honesty that derives much of its stock market value from opacity.

The paper inadvertently offers an answer to a crucial question of our time: Why won't Facebook just level with us? Why all the long, vague transparency pledges and congressional evasion? The study concludes that when the data mining curtain is pulled back, we really don't like what we see. There's something unnatural about the kind of targeting that's become routine in the ad world, this paper suggests, something taboo, a violation of norms we consider inviolable it's just harder to tell they're being violated online than off. But the revulsion we feel when we learn how we've been algorithmically targeted, the research suggests, is much the same as what we feel when our trust is betrayed in the analog world.

Original Submission