We study the estimation of preference heterogeneity in markets where consumers engage in costly search to learn product characteristics. Costly search amplifies the way consumer preferences translate into purchase probabilities, generating a seemingly large degree of preference heterogeneity. We...

Targeting - setting marketing policy differentially for different customers or segments - is an important marketing practice. Previous approaches to quantifying the benefits from targeting have typically calibrated a response model and used the variation in response parameter estimates to...

A firm launching a new product in an existing category can leverage comparative messages to provide information to customers and to distinguish it from others. Incumbents, on the other hand, benefit less from comparative messaging as this could be interpreted as providing legitimacy to the...

Multivariate count models represent a natural way of accommodating data from multiple product categories when the dependent variable in each category is represented by a positive integer. In this paper, we propose a new simultaneous equation multi-category count data model ndash; the...

For decades, statistical methods, many based upon the “general linear model,” have been used to do estimation and test hypotheses in the social and natural sciences, in medicine, and in the private sector. These tools have become increasingly sophisticated and are often paired with powerful...