Online matching platforms require new approaches to market design, because firms can now control many aspects of the search and interaction process through various IT-enabled features. Although choice capacity—the number of candidates a user can view and select—is a key design feature of...

We study the link between price points and price rigidity, using two datasets: weekly scanner data, and Internet data. We find that: "9" is the most frequent ending for the penny, dime, dollar and ten-dollar digits; the most common price changes are those that keep the price endings at "9";...

The underlying premise of referral marketing is to target existing, ostensibly delighted customers to spread awareness and influence adoption of a focal product amongst their friends who are also likely to benefit from adopting the product. In other words, referral programs are designed to...

The proliferation of smartphones and other mobile devices has led to numerous companies investing significant resources in developing mobile applications, in every imaginable domain. As apps proliferate, understanding the impact of app adoption on key outcomes of interest and linking this...

Despite the growing popularity of online referral programs, little is known about the theoretical foundations that drive the key actions associated with successful referrals. In this paper, we study which type of referral reward structure is most effective in maximizing word-of-mouth by...

We propose a framework covering multi-country and multi-generation diffusion processes. Our model focuses on choice-based diffusion model and we extend the model to incorporate heterogeneity of country. We decompose the choice probability for generation into two components; the first one is...

This paper aims to examine correlations in shopping situations. First, there is a certain amount of correlation between alternative choices. Specifically, the alternatives from different categories but from a same brand might be purchased together. Second, alternative choice and quantity choice...

The effect of sticker shock, price difference between reference price and shelf price, is crucial in forecasting consumer demand. In marketing literature, several papers have modeled the impact of reference prices on brand choice via the sticker shock formulation. However, the effect of sticker...

This paper investigates the role of the outside good utility function on admissible substitution patterns in direct utility models of discrete/continuous demand. We first present a set of novel results that characterize the functional form of price effects within this class of models. The...