We show how introductory offers emerge endogenously under conditions of competition in markets with switching costs. In a standard Hotelling model we find the combination of switching costs and introductory discounts to reduce industry profits relative to industries without switching costs, in...

We develop a general equilibrium model of informative advertising to examine the implications of privacy regulations on consumer welfare, focusing on its utilitarian aspects. In our model, firms reach consumers by placing ads on an advertising platform. Privacy regulations affect ad...

Many mobile app providers offer their apps for free and base their business models on user engagement. However, declining app usage over time threatens user engagement and the ability of apps to create business value. To keep users engaged, app providers use gamification, i.e., they link their...

Search engines are important access channels to news content of traditional newspapers with Google alone responsible for 35% of online visits to news outlets in the European Union. Yet, the effects of Google Search on market competition and information diversity have received scant attention....

Product brands are facing the increasing challenge of differentiating themselves from the competition through authentic and inspiring advertisements. Therefore, the choice of the right typeface as a design element for advertisement texts may play a crucialrole in consumer behavior. Although...

We report the results of surveys we conducted in the US and Israel in 2020, a time when many prices increased following the spread of the COVID-19 pandemic. To assess respondents' perceptions of price increases, we focus on goods whose prices have increased during the pandemic, including some...

We examine the scope and value of targeted advertising in the magazine industry. We use data on reader characteristics at individual media, in contrast to previous work that has needed to infer this information from aggregate data. Our results show a strong relationship between subscriber...

We investigate how consumer word of mouth (WOM) develops over time and in turn influences new product adoption. We develop a dynamic aggregate-level model of WOM development and new product diffusion that explicitly captures consumers’ learning of product quality from both marketing...