The digital revolution has allowed sellers to make large assortments of products available to consumers. Recommendation systems have played a central role in this dynamic. At the core of these systems is the use of data and sophisticated algorithms to predict match values between products and...

Abstract Endogenous consumption of advertising is common. Consumers can choose to change channels to avoid TV ads, click away from paid online video ads, or discard direct mail without reading advertised details. As technological advances give firms improved abilities to target individual...

Big data and technological change have enabled loyalty programs to become more prevalent and complex. How these developments influence society has been overlooked, both in academic research and in practice. We argue why this issue is important and propose a framework to refocus loyalty programs...

The advent of the Internet age has led to questions about the impact of obfuscation and information provision activities by sellers. We estimate the welfare effects of search design activities by an online used car seller, through a dynamic model of search over differentiated offerings. We...

This paper investigates the dynamic effects of price promotions in a retail setting through the use of a large-scale field experiment which involved varying the promotion depths of 170 products across 17 categories in 10 supermarkets of a major retailer in Chile. In the intervention phase of the...

We consider a persuasion setting in which the sender of a message tries to elicit a desired action from a receiver by means of a compelling argument. In order to understand which arguments may indeed be compelling, the sender can use information about the receiver's preferences prior to the...

Empirical models of strategic games are central to much analysis in marketing and economics. However, two challenges in applying these models to real world data are that such models often admit multiple equilibria and that they require strong informational assumptions. The first implies that the...

I consider a cheap-talk model in which a firm has a chance to communicate its product quality to consumers. The model describes how advertising can be both informative to consumers and profitable for the firm through its content in a vertically differentiated market. I find that advertising...