Many products have similar or common attributes and are thus correlated. We show that when these attributes are uncertain for consumers, a complementarity effect can arise among competing products, in the sense that the lower price of one product may increase the demands for the others. This...

This document presents supporting materials for the following publication: Zhang, Juanjuan and Peng Liu (2012), "Rational Herding in Microloan Markets," Management Science, Vol. 58, No. 5, May, pp. 892-912.Microloan markets allow individual borrowers to raise funding from multiple individual...

We consider the strategic use of information by an online platform to both guide consumer search through its product recommendations and influence sellers' targeting and advertising decisions. The model provides a unified view of personalized product recommendation and targeted advertising on...