We empirically examine the effectiveness of referral marketing and price promotion in generating sales in a large e-commerce platform. Our results show that although referral marketing increases sales, its effect is attenuated by price promotion. We argue that price promotion arouses quality...

The increasing pervasiveness of social networks allows users to share purchase behaviors with their online friends. In the present study, we examine optimal pricing strategies of a monopolistic firm using an analytical model that accounts for behavioral observational learning in social networks....