Combining Choices and Response Times in the Field : A Drift-Diffusion Model of Mobile Advertisements

Endogenous response time data is increasingly becoming available to applied researchers of economic choices. The drift-diffusion model (DDM) was originally developed to jointly explain subjects' choices and response times in laboratory experiments. Here, we adapt the DDM to a field setting to model users' responses to video advertisements on mobile devices. Our estimates of utility correlate positively with out-of-sample measures of ad engagement, thus providing external validation of the value of incorporating endogenous response time information into a choice model. Counterfactual simulations predict that making an ad “non-skippable” would lead to only modest increases in click-through rates and revenue