Two issues that have become increasingly important while estimating the parameters of aggregate demand functions to study firm behavior are the of marketing activities (typically, price) and across consumers in the market under consideration. Ignoring these issues in the estimation of the demand...

We present a framework of durable goods purchasing behavior in related technology product categories that incorporates the following aspects unique to technology product purchases. First, it accounts for consumers' anticipation of declining prices (or increasing quality) over time. Second, the...

We study three determinants of the levels of price and detailing effort across geographic markets: the within-market response to each variable, the nature of interfirm strategic interactions both within that market and across markets. We empirically examine the interactions of Prozac, Zoloft,...

This paper documents the existence and magnitude of contiguous word-of-mouth effects of signal quality of a video-on-demand (VOD) service on customer acquisition. We operationalize contiguous word-of-mouth effect based on geographic proximity and use behavioral data to quantify the effect. The...

Normative models typically suggest that prices rise in periods of high demand and cost. However, in many markets, prices fall when demand or costs rise. This inconsistency occurs because the normative models assume that competitive intensity does not change with demand and cost conditions over...

In this paper we develop a general class of dynamic brand choice models, called (LB) models, which are consistent with the theory of random utility maximization of consumer choice behavior. The underlying random utility process is Markov, and the inter-temporal evolution of the...

Previous research on state dependence indicates that a brand's purchase probabilities vary over time and depend on the levels of inertia and variety seeking and on the identity of the previously purchased brand. Brand-choice probabilities obtained from models such as the logit and the probit...

Before the deregulation of digital subscriber line (DSL) services by the Federal Communications Commission (FCC) in 2005, phone companies were required to share their DSL bandwidth with independent DSL providers. Despite the large number of independent providers that entered the market, phone...

This paper develops a framework for measuring “tipping”—the increase in a firm's market share dominance caused by indirect network effects. Our measure compares the expected concentration in a market to the hypothetical expected concentration that would arise in the absence of indirect...

Marketing researchers have used models of consumer demand to forecast future sales; to describe and test theories of consumer behavior; and to measure the response to marketing interventions. The basic framework typically starts from microfoundations of expected utility theory to obtain a...