This paper (Chapter 3 of a dissertation on online shopping behavior) evaluates the role of reference price on consumer behavior at the online channel, focusing on whether it plays a relevant role, how it is formed, the importance of two broad types of reference prices, internal reference price...

There is a substantial literature that documents the presence of state dependent utility with packaged goods data. Typically, a form of brand loyalty is detected whereby there is a higher probability of purchasing the same brand as has been purchased in the recent past. The economic significance...

The accumulated evidence indicates that pure revenue models, such as free-access models and pure subscription fee based models, are not sufficient to support the survival of online information sellers. Hence, hybrid models based on a combination of subscription fees and advertising revenues are...

Abstract We study the welfare implications of personalized pricing, an extreme form of third-degree price discrimination implemented with machine learning for a large, digital firm. We conduct a randomized controlled pricing field experiment to train a demand model and to conduct inferences...

An increasingly common practice among media platforms is to provide premium content versions with fewer or even no ads. This practice leads to an intriguing question: how should ad-financed media price discriminate through versioning? I develop a two-sided media model and illustrate that price...

We examine the value of price commitment in a nonprofit organization using individual level purchases over a series of concert performances. To decide on a pricing policy, the performing arts organization must be able to accurately measure when each ticket will be sold and what type of audience...

Certain companies have high capacity cost and rather moderate production cost. These companies usually assume that deciding about their capacity is quite critical. Frequently, however, they are able to adjust the demand for their products to the available capacity by setting appropriate prices,...

This paper analyzes dynamic advertising and pricing policies in a durable-good duopoly. The proposed infinite-horizon model, while general enough to capture dynamic price and advertising interactions in a competitive setting, also permits closed-form solutions. We use differential game theory to...

Modern revenue managers understand, anticipate, and react to market demand to maximize their businesses' revenues. They often do so by analyzing, forecasting, and optimizing their fixed, perishable inventory, and time-variable supply, through dynamic prices. Hence, the objective of pricing and...