We introduce item response theory (IRT) to management and strategy research. IRT explicitly models firms’ and individuals’ observable actions in order to measure unobserved, latent characteristics. IRT models have helped researchers improve measures in numerous disciplines. To demonstrate...

As paid search becomes the mainstream platform for online advertising today, competition further intensifies. The main objective of this research is two-fold. On the one hand, we want to understand, in the context of paid-search advertising, the effects of competition (measured by number of ads...

We propose a spatial multinomial probit model to examine the determinants of land use change, at the parcel level, in the French Département du Rhones from 1992 to 2003. It is based on an economic model that assumes that landowners have a choice between four land use categories for a given...

Researchers in marketing are often interested in analyzing how an agent’s discrete choice decision affects a subsequent or concurrent discrete choice decision by the same or different agent. This analysis may necessitate the use of a simultaneous equations model with discrete and continuous...

We study the performance of Bayesian model averaging as a forecasting method for a large panel of time series and compare its performance to principal components regression (PCR). We show empirically that these forecasts are highly correlated implying similar mean-square forecast errors. Applied...

Nearly all theoretically motivated models of consumer demand for multiple goods assume additive separability in preferences, i.e. the consumption utility of each good x is independent of the quantity demanded of another good y. This is a strong restriction that makes the solution of the...

Researchers often collect continuous consumer feedback (“moment-to-moment,” or MTM, data) to understand how consumers respond during a variety of experiences (ranging from viewing a TV show to undergoing a colonoscopy). Analyzing how MTM judgments are integrated into overall evaluations...

This research provides a new way to validate and compare buy-till-you-defect [BTYD] models. These models specify a customer’s transaction and defection processes in a non-contractual setting. They are typically used to identify active customers in a com- pany’s customer base and to predict...

We introduce a new methodology that can capture and explain differences across a series of cohorts of new customers in a repeat-transaction setting. More specifically, this new framework, which we call a vector changepoint model, exploits the underlying regime structure in a sequence of acquired...

Estimation of the one sided error component in stochastic frontier models may erroneously attribute firm characteristics to inefficiency if heterogeneity is unaccounted for. However, it is not clear in general in which component of the error distribution the covariates should be included. In the...