Word-of-mouth (WOM) plays an increasingly important role today in shaping consumers' attitudes and buying behaviors. Prior work in marketing has mainly focused on the aggregate impact of WOM on product sales as well as the generation of WOM. Very little attention has been paid to the consumption...

We investigate how location-based services (LBS) influence consumers' choice behavior in the mobile Internet. LBS are able to make use of the users' location by the means of GPS-enabled smartphones. Further, the ubiquitous nature of smartphones increases the importance of additional contextual...

A monopolist uses prices as an instrument to influence consumers' belief about the unknown quality of its product. Consumers observe prices and sales in earlier periods to learn about the product. Every period they decide whether to consume the product or to wait for a lower price in future. We...

We designed an experiment that examines how knowledge about the price of a good, and the time at which the information is received, affects how the good is experienced. The good in question was wine, and the price was either high or low. Our results suggest that hosts offering wine to guests can...

We study how a consumer optimally allocates attention to favorable and unfavorable information related to a product before purchasing it, when information processing is costly. We find that attention allocation depends on the consumer's prior belief about whether the product matches her needs or...

Prices that end with 9, also known as psychological price points, are common, comprising about 70% of the retail prices. They are also more rigid than other prices. We take advantage of a natural experiment to document an emergence of a new price ending that has the same effects as 9-endings. In...

Consumers commonly seek information from critic and consumer reviews when new product quality remains uncertain. However, consumer reviews are endogenous and may be subject to potential biases (e.g., self-selection). In this paper, we propose a new dynamic structural model where forward-looking...

We quantify the effects of others' adoptions and word-of-mouth (volume and valence) on consumers' product adoption decisions. We differentiate between the effects of word-of-mouth and observed adoptions from friends ("personal network") and the effects of word-of-mouth and observed adoptions...

An agent makes consumption choices in multiple periods. Choice objects vary in type and quality; objects of the same type are inter-temporal substitutes. The current choice set is informative about the distribution over future choice sets. Thus, the presence of unchosen alternatives may...

The mere fact that consumers are targeted by advertisements can affect their inference about the expected utility of a product. We build a micro-model where multiple firms compete through targeted advertising. Consumers make inferences from targeted advertising about their potential match values...