EdTech Insight – Research: How Ratings Systems Shape User Behavior in the Gig Economy

by | Apr 11, 2024 | Harvard Business Review, News & Insights

Executive Summary and Main Points

An examination of digital rating systems within the gig economy has highlighted the significant role these systems play in shaping user behavior and platform dynamics. Incremental rating systems, showcased by entities like TaskRabbit and Airbnb, provide granular feedback through individual reviews, allowing for transparency and user engagement. On the other hand, platforms such as Uber and Lyft utilize averaged rating systems that amalgamate individual ratings into a singular composite score. Through nine controlled experiments, research has unveiled the nuanced impact of how low ratings are communicated, with implications for platform providers’ decisions in implementing these systems.

Potential Impact in the Education Sector

The adoption of similar rating systems in Further Education and Higher Education has the potential to transform the feedback loop between educators and students. Such systems could incentivize high-quality instruction and active learning. Similarly, the push for Micro-credentials, which are gaining traction as a form of professional development, could leverage these insights for more robust assessments. The choice between incremental and averaged rating systems could inform strategic partnerships and the digitalization of education, aligning closely with quality benchmarks and accreditation processes.

Potential Applicability in the Education Sector

The implementation of AI-powered rating systems can enhance global educational platforms by providing more personalized and actionable feedback for learners and educators alike. Tools that incorporate incremental ratings could allow for a more tailored analysis of a student’s progress and a professor’s effectiveness, fostering a culture of continuous improvement. In the context of international education, such systems can also account for cultural nuances and language barriers, ensuring inclusivity and accessibility in feedback mechanisms.

Criticism and Potential Shortfalls

While promising, these rating systems must be scrutinized for potential biases and misinterpretations that could result in inequities. Comparative case studies reveal how averaged ratings may obscure individual experiences of marginalization, while incremental ratings could invite subjective biases that affect individuals disproportionately. Ethical considerations around privacy and the pressure of constant evaluation are additional concerns that must be addressed to ensure such systems do not adversely impact the educational experience.

Actionable Recommendations

Implementers of education technologies should consider piloting both incremental and averaged rating systems within select courses or departments to gauge their impact. Collaboration with educational experts and technologists is crucial to designing systems that account for the sector’s nuances, such as academic rigor and ethical standards. Lastly, international education leadership must foster a culture of openness to feedback, simultaneously training students and staff to engage constructively with these new tools as part of their digital transformation roadmap.

Source article: https://hbr.org/2024/04/research-how-ratings-systems-shape-user-behavior-in-the-gig-economy