I have been thinking of a lot of incentivized networks and was almost coming to the same conclusion, that the extra cost and the questionable legality in certain jurisdictions may not be worth the payoff, and then the Nielsen scandal showed up on my newsfeed. I think there is a niche, just not sure where would it be most profitable. Incidentally Steve Waldman also had a recent post on this - social science data being maintained in a neutral blockchain.
About the shipping of products and placebos to people, I see a physical way of doing it, but it is definitely not scalable.
Let's say there is a typical batch of identical products to be tested. They've been moved to the final inventory sub-inventory, but not yet to the staging area where they are to be shipped out. The people from the testing service arrive with a bunch of duplicate labels for the batch and the placebos and replace 1/2 the quantity with placebo. Now, only the testing service knows which item is placebo and which is product.
This requires 2 things from the system - the ability to trace individual products and the ability to print duplicate labels. the latter should be common except for places which might have some legal issues for continuous numbering. Ability to trace individual products is there in a lot of discrete mfg. but a whole lot of process manufacturing industries have only traceability by batch/lot.
Your approach to blinding makes sense, and works. I thought we were trying for a zero third party approach though?
I was giving more thought to a distributed solution during dinner, and I think I see how to solve the physical shipments problem in a scalable way. I'm still not 100% sold on it, but consider these two options:
I'm a LW reader, two time CFAR alumnus, and rationalist entrepreneur.
Today I want to talk about something insidious: marketing studies.
Until recently I considered studies of this nature merely unfortunate, funny even. However, my recent experiences have caused me to realize the situation is much more serious than this. Product studies are the public's most frequent interaction with science. By tolerating (or worse, expecting) shitty science in commerce, we are undermining the public's perception of science as a whole.
The good news is this appears fixable. I think we can change how startups perform their studies immediately, and use that success to progressively expand.
Product studies have three features that break the assumptions of traditional science: (1) few if any follow up studies will be performed, (2) the scientists are in a position of moral hazard, and (3) the corporation seeking the study is in a position of moral hazard (for example, the filing cabinet bias becomes more of a "filing cabinet exploit" if you have low morals and the budget to perform 20 studies).
I believe we can address points 1 and 2 directly, and overcome point 3 by appealing to greed.
Here's what I'm proposing: we create a webapp that acts as a high quality (though less flexible) alternative to a Contract Research Organization. Since it's a webapp, the cost of doing these less flexible studies will approach the cost of the raw product to be tested. For most web companies, that's $0.
If we spend the time to design the standard protocols well, it's quite plausible any studies done using this webapp will be in the top 1% in terms of scientific rigor.
With the cost low, and the quality high, such a system might become the startup equivalent of citation needed. Once we have a significant number of startups using the system, and as we add support for more experiment types, we will hopefully attract progressively larger corporations.
Is anyone interested in helping? I will personally write the webapp and pay for the security audit if we can reach quorum on the initial protocols.
Companies who have expressed interested in using such a system if we build it:
(I sent out my inquiries at 10pm yesterday, and every one of these companies got back to me by 3am. I don't believe "startups love this idea" is an overstatement.)
So the question is: how do we do this right?
Here are some initial features we should consider:
Any placebos used in the studies must be available for purchase as long as the results are used in advertising, allowing for trivial study replication.
Significant contributors will receive:
I'm hoping that if a system like this catches on, we can get an "effective startups" movement going :)
So how do we do this right?