We study consumers' purchase behavior on daily deal websites (e.g., Groupon promotions) using individual clickstream data on the browsing history of new subscribers to Groupon between January and March 2011. We observe two patterns in the data. First, the probability that a given consumer clicks...

We measure the cross-category spillover effects of a retailer changing its assortment at the extensive margin (by dropping an entire category from its portfolio) on the outcomes for its rivals in the industry.By leveraging the quasi-experimental nature of the exit by a national pharmacy chain,...

We propose a new likelihood-based estimation method for the sequential search model. By allowing search costs to be heterogeneous across consumers and products, we can directly compute the joint probability of the search sequence and the purchase decision when consumers are searching for the...

We develop a structural model of demand and supply for tied-goods which we estimate using aggregate data from the single-serve coffee system industry. We use the parameter estimates to quantify the impact of licensing on equilibrium prices and profits for firms in the industry. In particular, we...

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...

Price transparency initiatives are typically undertaken by third parties to ensure that consumers can compare the prices of competing offers in markets where obtaining such information is costly. Such practices have recently become widespread, yet it is unclear whether the increased price...

Using the Nielsen Homescan data, we describe what happened to household purchase behavior during the Great recession (Dec 2007-June 2009). Our specific objectives in this study are to understand how the recession impacted: households' grocery spending in a broad cross-section of 31 food...

This paper examines the spillover effects of promotions when products from different firms are consumed in a bundle. Using data from the HIV/AIDS category, a canonical example of combination therapy, we estimate a hierarchical Bayesian logit model across treatment regimens and show that...

We study the identification of the search method consumers use when resolving uncertainty in the prices of alternatives. We show that the search method -- simultaneous or sequential -- is identified with data on consumers' consideration sets (but not the sequence of searches), prices for the...

In this paper, we study the effect of a firm's local channel exits on prices charged by incumbents remaining in the marketplace. Exits could result in higher prices due to tempered competition or lower prices due to reduced co-location or agglomeration benefits. The net effect of these two...