How do firms cope with the challenges of disruptive change in their industry? Numerous studies have highlighted that success with any prior technology creates a negative legacy effect for the next radical technological shift. We question the overly pessimistic view of such legacy effects and ask...

Corporate acquisitions are a ubiquitous feature of today's business landscape and a widely used means by which large firms enter new markets. As large acquirers swoop in to acquire firms in new markets, they are almost inevitably met with a chorus of concerns about the potential effects of their...

A common perception in the field of innovation is that large, incumbent firms rarely introduce radical product innovations. Such firms tend to solidify their market positions with relatively incremental innovations. They may even turn away entrepreneurs who come up with radical innovations,...

The authors develop a model to decompose the effects of television advertising for a toll-tree referral service, at the hourly level. The model estimates which ad works, when, in which station, and for how long. Results of the analysis show that ads do stimulate direct response, but their...

Most past research has focused on how aggregate advertising works in field settings. However, the information most critical to managers is which ad works, in which medium or vehicle, at what time of the day, at what level of repetition, and for how long. Managers also need to know why a...

The authors study how ad cues attect consuMer behavior in new versus well-established markets. The authors use theoretical insights from consumer information processing to argue that the same ad cues can have different ettects on consumer behavior, depending on whether the market is new or old....

Economists argue that, despite cognitive limitations, economic agents arrive at optimal choice rules by learning. The assumption is that consumers, for example, are adaptively rational. Adaptive rationality raises a host of issues. We address three of these in the context of experimental...

How do firms cope with the challenges of disruptive change in their industry? Numerous studies have highlighted that success with any prior technology creates a negative legacy effect for the next radical technological shift. We question the overly pessimistic view of such legacy effects and ask...

How do firms cope with the challenges of disruptive change in their industry? Numerous studies have highlighted that success with any prior technology creates a negative legacy effect for the next radical technological shift. We question the overly pessimistic view of such legacy effects and ask...