Emerging markets are fast growing developing countries that are creating not only a rapidly expanding segment of middle class and rich consumers but also have a sizable segment of poor consumers. This paper presents an interdisciplinary perspective integrating insights from quantitative and...

This paper studies how market competition influences the algorithmic design choices of firms in the context of targeting. Firms face the general trade-off between bias and variance when choosing the design of a supervised learning algorithm in terms of model complexity or the number of...

Much of experimental research in marketing has focused on individual choices. Yet in many contexts, the outcomes of one’s choices depend on the choices of others. Furthermore, the results obtained in individual decision making context may not be applicable to these strategic choices. In this...

Suppliers are increasingly acquiring consumer information in a sequential fashion with negligible marginal costs, and influencing downstream retailer actions by sharing the acquired information using either exante mandatory or ex-post voluntary sharing formats. This paper examines the...

We consider competition between firms that design and use algorithms to target consumers. Firms first choose the design of a supervised learning algorithm in terms of the complexity of the model or the number of variables to accommodate. Each firm then appoints a data analyst to estimate demand...

We study the phenomenon of strategic polarization in group interactions. Agents with private preferences choose a public action (e.g., voice opinions), and the mean of their actions represents the group’s realized outcome. They face a trade-off between influencing the group outcome and...