This paper presents estimation results on the size and loyalty of sport teams’ supporter groups in professional German football. Based on a novel two-stage estimation procedure, we find clear evidence for heterogeneity across teams. In a first stage, a random utility model for a representative...

Sales incentives are omnipresent in sales organizations. Numerous studies have thus analyzed the effect of sales incentives on sales force motivation and performance. At the same time, extant research portrays customer knowledge of sales incentives predominantly as a burden for the customer-firm...

Economists have recently started to theoretically analyse the performance implications of transparency in organisations where the principal has private information. An important finding in this literature is that the principal may want to partly withhold information from the agent, and to expose...

Online reviews are supposed to provide an unbiased source of information for consumers. However, prior studies have shown that, due to the complex nature of consumer-producer matching and the influence of the consumer's social environment on their decision-making, such reviews are subject to...

This paper provides field evidence that social distance between customers and reviewers influences the impact from online reviews on product sales. We conceptualize information on interpersonal similarity as a heuristic cue that helps customers to infer similarity in product preferences between...

We show that professional soccer players exhibit reference-dependent behavior during matches. Controlling for the state of the match and for unobserved heterogeneity, we show on a minute-by-minute basis that a player breaches the rules of the game, measured by the referee's assignment of cards,...

Existing evidence shows that decision-makers' social ties to internal co-workers can lead to reduced firm performance. In this paper, we show that decision-makers' social ties to external transaction partners can also hurt firm performance. Specifically, we use 34 years of data from the National...

In a range of studies across platforms, online ratings have been shown to be characterized by distributions with disproportionately-heavy tails. We focus on understanding the underlying process that yields such “j-shaped” or “extreme” distributions. We propose a novel theoretical...