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Transitory shocks, limited attention, and a firm’s decision to exit Quant. Mark. Econ. (IF 1.48) Pub Date : 2024-03-07 Avi Goldfarb, Mo Xiao
This paper investigates the incidence of limited attention in a high-stakes business setting: a bar owner may be unable to purge transitory shocks from noisy profit signals when deciding whether to exit. Combining a 24-year monthly panel on the alcohol revenues from every bar in Texas with weather data, we find suggestive evidence that inexperienced, distantly located owners may overreact to the transitory
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Better with buy now, pay later?: A competitive analysis Quant. Mark. Econ. (IF 1.48) Pub Date : 2023-12-15 Preyas S. Desai, Pranav Jindal
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The pricing strategies of online grocery retailers Quant. Mark. Econ. (IF 1.48) Pub Date : 2023-11-28 Diego Aparicio, Zachary Metzman, Roberto Rigobon
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Identification in english auctions with shill bidding Quant. Mark. Econ. (IF 1.48) Pub Date : 2023-11-23 Guillermo Marshall
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Are consumers averse to sponsored messages? The role of search advertising in information discovery Quant. Mark. Econ. (IF 1.48) Pub Date : 2023-11-20 Navdeep S. Sahni, Charles Zhang
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A high-performance turnkey system for customer lifetime value prediction in retail brands Quant. Mark. Econ. (IF 1.48) Pub Date : 2023-11-08 Yan Yan, Nicholas Resnick
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Is first- or third-party audience data more effective for reaching the ‘right’ customers? The case of IT decision-makers Quant. Mark. Econ. (IF 1.48) Pub Date : 2023-10-24 Nico Neumann, Catherine E. Tucker, Kumar Subramanyam, John Marshall
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Counter-cyclical price promotion: Capturing seasonal changes in stockpiling and endogenous consumption Quant. Mark. Econ. (IF 1.48) Pub Date : 2023-10-20 Minjung Kwon, Tülin Erdem, Masakazu Ishihara
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From uniform to bespoke prices: Hotel pricing during EURO 2016 Quant. Mark. Econ. (IF 1.48) Pub Date : 2023-07-27 Marcella Nicolini, Claudio A. Piga, Andrea Pozzi
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Targeted incentives, broad impacts: Evidence from an E-commerce platform Quant. Mark. Econ. (IF 1.48) Pub Date : 2023-07-05 Xiang Hui, Meng Liu, Tat Chan
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Price commitment and the strategic launch of a fighter brand Quant. Mark. Econ. (IF 1.48) Pub Date : 2023-07-01 Peter-J. Jost
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Local excise taxes, sticky prices, and spillovers: evidence from Berkeley’s soda tax Quant. Mark. Econ. (IF 1.48) Pub Date : 2023-07-01 Bryan Bollinger, Steven E. Sexton
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Effect of search cost in the presence of search deterring informative advertising Quant. Mark. Econ. (IF 1.48) Pub Date : 2023-06-05 Bikram P. Ghosh , Michael R. Galbreth
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Face/Off: The adverse effects of increased competition Quant. Mark. Econ. (IF 1.48) Pub Date : 2023-06-02 Iman Ahmadi
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Price promotions, beneficiary framing, and mental accounting Quant. Mark. Econ. (IF 1.48) Pub Date : 2023-03-10 Geoffrey Fisher, Matthew McGranaghan, Jura Liaukonyte, Kenneth C. Wilbur
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Mergers with endogenous product choice: The case of the ready-to-eat cereal industry Quant. Mark. Econ. (IF 1.48) Pub Date : 2023-01-13 Federico Rossi
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Shrinkage priors for high-dimensional demand estimation Quant. Mark. Econ. (IF 1.48) Pub Date : 2022-12-29 Adam N. Smith, Jim E. Griffin
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Store expensiveness and consumer saving: Insights from a new decomposition of price dispersion Quant. Mark. Econ. (IF 1.48) Pub Date : 2022-10-26 Sofronis Clerides, Pascal Courty, Yupei Ma
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Non-linear pricing effects in conjoint analysis Quant. Mark. Econ. (IF 1.48) Pub Date : 2022-10-13 YiChun Miriam Liu, Jeff D. Brazell, Greg M. Allenby
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Price dynamics of Swedish pharmaceuticals Quant. Mark. Econ. (IF 1.48) Pub Date : 2022-10-08 Aljoscha Janssen
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Vertical integration of platforms and product prominence Quant. Mark. Econ. (IF 1.48) Pub Date : 2022-07-15 Morgane Cure, Matthias Hunold, Reinhold Kesler, Ulrich Laitenberger, Thomas Larrieu
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Price promotions and “freemium” app monetization Quant. Mark. Econ. (IF 1.48) Pub Date : 2022-07-12 Julian Runge, Jonathan Levav, Harikesh S. Nair
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Adaptive grids for the estimation of dynamic models Quant. Mark. Econ. (IF 1.48) Pub Date : 2022-06-30 Andreas Lanz, Gregor Reich, Ole Wilms
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Quantifying the link between employee engagement, and customer satisfaction and retention in the car rental industry Quant. Mark. Econ. (IF 1.48) Pub Date : 2022-06-13 Ahmed Khwaja, Nathan Yang
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Proxies for legal firearm prevalence Quant. Mark. Econ. (IF 1.48) Pub Date : 2022-05-24 Jessica Jumee Kim, Kenneth C. Wilbur
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A sequential choice model for multiple discrete demand Quant. Mark. Econ. (IF 1.48) Pub Date : 2022-04-07 Sanghak Lee, Sunghoon Kim, Sungho Park
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Copula-based direct utility models for correlated choice alternatives Quant. Mark. Econ. (IF 1.48) Pub Date : 2022-03-23 Chul Kim, Duk Bin Jun, Sungho Park
We propose a general framework of copula-based direct utility models and suggest two approaches (Gaussian and FGM approaches) that can accommodate correlations among unobserved utilities. We investigate how and in which directions the biases in parameter estimates of direct utility models occur when error correlations are ignored. Furthermore, we provide practical guidance to empirical researchers
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Industry-funded research and bias in food science Quant. Mark. Econ. (IF 1.48) Pub Date : 2022-03-04 Anita Rao
Is industry-funded scientific research likely to be biased towards finding positive results? Is industry more likely to work on topics with likely positive outcomes? Using publication-level data and focusing on food groups that are typically considered healthy, I evaluate each article’s abstract using crowdsourcing tools. I find little evidence to support selection on topics with positive outcomes
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The role of slant and message consistency in political advertising effectiveness: evidence from the 2016 presidential election Quant. Mark. Econ. (IF 1.48) Pub Date : 2022-01-28 Beth L. Fossen, Donggwan Kim, David A. Schweidel, Raphael Thomadsen
We explore the relationship between the content of political advertising on television and ad effectiveness. Specifically, we investigate how slant – the extremeness of the message – and consistency with the candidate’s primary campaign messaging in national ad buys relate to two measures of voter behavior: online word-of-mouth (WOM) and voter preference (captured through daily polls) for the candidates
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Leveraging loyalty programs using competitor based targeting Quant. Mark. Econ. (IF 1.48) Pub Date : 2022-01-10 Wayne Taylor, Brett Hollenbeck
Loyalty programs (LPs) are widely used by firms but not well understood. These programs provide discounts and perks to loyal customers and are costly to administer, but produce uncertain changes in spending patterns. We use a large and detailed dataset on customer shopping behavior at one of the largest U.S. retailers before and after joining a loyalty program to evaluate how behavior changes. We combine
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Correction to: Counterfactual inference for consumer choice across many product categories Quant. Mark. Econ. (IF 1.48) Pub Date : 2021-12-01 Robert Donnelly,Francisco J. R. Ruiz,David Blei,Susan Athey
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Comments on “Counterfactual Inference for Consumer Choice Across Many Product Categories” Quant. Mark. Econ. (IF 1.48) Pub Date : 2021-12-01 Pradeep K. Chintagunta
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Counterfactual inference for consumer choice across many product categories Quant. Mark. Econ. (IF 1.48) Pub Date : 2021-11-17 Robert Donnelly, Francisco J.R. Ruiz, David Blei, Susan Athey
This paper proposes a method for estimating consumer preferences among discrete choices, where the consumer chooses at most one product in a category, but selects from multiple categories in parallel. The consumer’s utility is additive in the different categories. Her preferences about product attributes as well as her price sensitivity vary across products and may be correlated across products. We
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Measuring the competition effects of price-matching guarantees Quant. Mark. Econ. (IF 1.48) Pub Date : 2021-11-03 Mamadehussene, Samir
The theoretical literature on price-matching guarantees (PMGs) finds that this policy has both a competition-softening and a competition-enhancing effect. Which effect dominates depends on market structure. This paper is the first to propose a structural framework to measure the impact of PMGs on market competition through a counterfactual analysis. The structural model proposed here can be estimated
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Prices and promotions in U.S. retail markets Quant. Mark. Econ. (IF 1.48) Pub Date : 2021-10-29 Hitsch, Günter J., Hortaçsu, Ali, Lin, Xiliang
We provide generalizable results on the price and promotion tactics employed in the U.S. retail grocery industry. First, we document a large degree of price dispersion for UPCs and brands across stores, both nationally and at the local market level. Base price differences across stores and price promotions contribute to the overall price variance, and we show how to decompose the price variance into
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Keywords, limited consideration, and organic product listings Quant. Mark. Econ. (IF 1.48) Pub Date : 2021-10-29 Landry, Peter
This paper theoretically investigates the competitive effects of digital keyword search (DKS) in an organic (unsponsored) search market. In the model, sellers can decide which keyword(s) to include in their product listings—a common, but normally unmodeled real-world decision—while consumers only consider sellers whose listings are revealed by their searched keyword(s). The analysis focuses on two
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Estimating expectations-based reference-price effects in the used-car retail market Quant. Mark. Econ. (IF 1.48) Pub Date : 2021-10-06 Huang, Guofang, Liu, Haiyan
This paper estimates the reference-price effects in consumers’ car purchase decisions exploiting a unique panel data-set on the non-negotiable daily list prices for used cars advertised by a large national dealership. Guided by the theory of Köszegi and Rabin (The Quarterly Journal of Economics, 1133–1165, 2006), the paper identifies the reference price for a car as the car’s list price on the previous
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Selling mechanisms for perishable goods: An empirical analysis of an online resale market for event tickets Quant. Mark. Econ. (IF 1.48) Pub Date : 2021-05-04 Caio Waisman
This paper assesses the value of the availability of menus of different selling mechanisms to agents in an online platform in the context of scarce perishable goods. By analyzing the choice between auctions and posted prices in the context of National Football League tickets offered on eBay, it estimates a structural model in which heterogeneous, forward-looking sellers optimally choose which selling
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Are e-books a different channel? Multichannel management of digital products Quant. Mark. Econ. (IF 1.48) Pub Date : 2021-03-23 Hui Li
Digital products are differentiated from online and offline physical products in important ways. This paper studies the influence of digital products on existing channels and the optimal multichannel management strategy in the context of the book industry. Using individual-level online transaction data and county-level offline bookstore data, I estimate a demand model of book format and retailer choices
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Asymmetric cost pass-through and consumer search: empirical evidence from online platforms Quant. Mark. Econ. (IF 1.48) Pub Date : 2021-03-23 Sven Heim
Prices often react stronger to rising than to falling costs. This asymmetric cost pass-through is still not fully understood, but recent theories suggest that asymmetric adjustments of consumers’ search efforts to rising and to falling prices may be one explanation for this pattern. I use novel panel data to investigate the interaction of consumer search intensity, pricing and cost pass-through of
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Consumer search in the U.S. auto industry: The role of dealership visits Quant. Mark. Econ. (IF 1.48) Pub Date : 2020-10-26 Dan Yavorsky, Elisabeth Honka, Keith Chen
In many markets, consumers visit stores and physically inspect products before making purchase decisions. We view the inspection of a product at a retail location as a search for product fit. We quantify the cost and benefit from searching for product fit using a discrete choice model of demand with optimal sequential search. In these models, the benefit of searching is measured by the standard deviation
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The impact of social distancing on box-office revenue: Evidence from the COVID-19 pandemic Quant. Mark. Econ. (IF 1.48) Pub Date : 2020-10-21 In Kyung Kim
In this paper, I study the short-run effect of social distancing due to the COVID-19 outbreak on movie demand and box-office revenue. Using longitudinal data on the Korean movie theater industry, I first estimate a nested logit model of movie demand, and then quantify the revenue loss in the industry. Estimation results reveal that the revenue loss due to the decrease in underlying movie demand is
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Benefit Formation and Enhancement Quant. Mark. Econ. (IF 1.48) Pub Date : 2020-10-10 Hyowon Kim, Dong Soo Kim, Greg M. Allenby
The identification of product attributes and features that are essential for a benefit to exist is critical to new product development and formulation. Some attributes are benefit enabling in the sense that their presence indicates that an offering is responsive to a need, and their absence points out that the product is not responsive. Not all agricultural products, for example, are seen as having
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Social network design for inducing effort Quant. Mark. Econ. (IF 1.48) Pub Date : 2020-07-10 Pinar Yildirim, Yanhao Wei, Christophe Van den Bulte, Joy Lu
Many companies create and manage communities where consumers observe and exchange information about the effort exerted by other consumers. Such communities are especially popular in the areas of fitness, education, dieting, and financial savings. We study how to optimally structure such consumer communities when the objective is to maximize the total or average amount of effort expended. Using network
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Displaying things in common to encourage friendship formation: A large randomized field experiment Quant. Mark. Econ. (IF 1.48) Pub Date : 2020-05-23 Tianshu Sun, Sean J. Taylor
Friendship formation is of central importance to online social network sites and to society, but can suffer from significant and unequal frictions. In this study, we demonstrate that social networks and policy makers may use an IT-facilitated intervention – displaying things in common (TIC) between users (mutual hometown, interest, education, work, city) – to encourage friendship formation, especially
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How to generalize from a hierarchical model? Quant. Mark. Econ. (IF 1.48) Pub Date : 2020-05-17 Max J. Pachali, Peter Kurz, Thomas Otter
Models of consumer heterogeneity play a pivotal role in marketing and economics, specifically in random coefficient or mixed logit models for aggregate or individual data and in hierarchical Bayesian models of heterogeneity. In applications, the inferential target often pertains to a population beyond the sample of consumers providing the data. For example, optimal prices inferred from the model are
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Can free-shipping hurt online retailers? Quant. Mark. Econ. (IF 1.48) Pub Date : 2020-04-02 Ricard Gil, Evsen Korkmaz, Ozge Sahin
In this paper, we investigate optimal pricing strategies for an online grocery retailer that derives its profits from delivery fees and grocery sales. We base our theoretical framework on the well-established work of Schmalensee (Bell Journal of Economics12(2), 445–466, 1981) in two-part pricing, while allowing for repeat purchase occasions. We derive testable implications that we take to data using
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The Effect of Sales Assistance on Purchase Decisions: An analysis using retail video data Quant. Mark. Econ. (IF 1.48) Pub Date : 2020-03-20 Aditya Jain, Sanjog Misra, Nils Rudi
We investigate the role of sales assistance in driving customer’s purchase decision using unique observational video data from a cosmetics retail chain. The data contain visual descriptors of customers and their in-store activities including the time they spent in interacting with salespersons (sales assistance), and are linked to their purchase decisions. Our empirical specification is based on the
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Software piracy and outsourcing in two-sided markets Quant. Mark. Econ. (IF 1.48) Pub Date : 2020-02-13 Masakazu Ishihara, Eitan Muller
This paper examines the role of software piracy in digital platforms where a platform provider makes a decision of how much software to produce in-house and how much to outsource from a third-party software provider. Using a vertical differentiation model, we theoretically investigate how piracy influences the software outsourcing decision. We find that when piracy is intermediate, the loss in in-house
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Correction to: Can your advertising really buy earned impressions? The effect of brand advertising on word of mouth Quant. Mark. Econ. (IF 1.48) Pub Date : 2020-01-09 Mitchell J. Lovett, Renana Peres, Linli Xu
The table below should replace Table 1.
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The effect of exogenous product familiarity on endogenous consumer search Quant. Mark. Econ. (IF 1.48) Pub Date : 2019-12-11 Michael R. Galbreth, Bikram Ghosh
When a consumer is familiar with one product but not its competitor, she is faced with a decision: either buy what she knows, or engage in search to learn more. When search is costly, competing firms may attempt to encourage or discourage search by adjusting prices. In this paper we consider how competitive dynamics between two quality differentiated firms are affected if one product enjoys a familiarity
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Retailers’ product location problem with consumer search Quant. Mark. Econ. (IF 1.48) Pub Date : 2019-09-12 Raluca M. Ursu, Daria Dzyabura
With few exceptions, today’s retailers sell products across multiple categories. One strategic consideration of such retailers is product location, which determines how easy or difficult different categories are for customers to access. For example, grocery or department stores determine which products will be located closer to the entrance of the store versus at the back of it, while online retailers
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Horizontal mergers and innovation in concentrated industries Quant. Mark. Econ. (IF 1.48) Pub Date : 2019-09-09 Brett Hollenbeck
It is an open question in antitrust economics whether allowing dominant firms to acquire smaller rivals is ultimately helpful or harmful to the long run rate of innovation and therefore long-term consumer welfare. I develop a framework to study this question in a dynamic oligopoly model where firms endogenously engage in investment, entry, exit and mergers. Firms produce vertically differentiated goods
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Search query formation by strategic consumers Quant. Mark. Econ. (IF 1.48) Pub Date : 2019-08-30 Jia Liu, Olivier Toubia
Submitting queries to search engines has become a major way for consumers to search for information and products. The massive amount of search query data available today has the potential to provide valuable information on consumer preferences. In order to unlock this potential, it is necessary to understand how consumers translate their preferences into search queries. Strategic consumers should attempt
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VANISH regularization for generalized linear models Quant. Mark. Econ. (IF 1.48) Pub Date : 2019-08-14 Oliver J. Rutz, Garrett P. Sonnier
Marketers increasingly face modeling situations where the number of independent variables is large and possibly approaching or exceeding the number of observations. In this setting, covariate selection and model estimation present significant challenges to usual methods of inference. These challenges are exacerbated when covariate interactions are of interest. Most extant regularization methods make
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Estimating dynamic discrete choice models with aggregate data: Properties of the inclusive value approximation Quant. Mark. Econ. (IF 1.48) Pub Date : 2019-08-14 Timothy Derdenger, Vineet Kumar
We investigate the use of the inclusive value based approach for estimating dynamic discrete choice models of demand with aggregate data. The inclusive value sufficiency (IVS) approach approximates a multi-dimensional state space with a single “sufficient statistic” in order to mitigate the curse of dimensionality and tractability estimate model primitives. Although in widespread use, the conditions
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Evaluating horizontal mergers in the presence of price promotions Quant. Mark. Econ. (IF 1.48) Pub Date : 2019-06-24 Maxim Sinitsyn
In this paper, I investigate the impact of a horizontal merger between firms that use price promotions. I find that after the merger, the merged firms increase their prices, but coordinate the promotions by never discounting their products simultaneously. The non-merged firm responds with a more aggressive pricing strategy, offering deeper and more frequent discounts. The effects of a merger on the
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Comments on “identification and semiparametric estimation of a finite horizon dynamic discrete choice model with a terminating action” Quant. Mark. Econ. (IF 1.48) Pub Date : 2019-04-11 Øystein Daljord, Denis Nekipelov, Minjung Park
Bajari et al. (Quantitative Marketing and Economics, 14(4), 271–323, 2016) showed conditions under which the discount factor is identified in a finite horizon optimal stopping problem. We show that these conditions can be cast as a special case of a class of exclusion restrictions which are relevant for a broader scope of applications, and extend the identification result to both finite horizon and
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Can your advertising really buy earned impressions? The effect of brand advertising on word of mouth Quant. Mark. Econ. (IF 1.48) Pub Date : 2019-04-06 Mitchell J. Lovett, Renana Peres, Linli Xu
Paid media expenditures could potentially increase earned media exposures such as social media posts and other word-of-mouth (WOM). However, academic research on the effect of advertising on WOM is scarce and shows mixed results. We examine the relationship between monthly Internet and TV advertising expenditures and WOM for 538 U.S. national brands across 16 categories over 6.5 years. We find that