Is there is a connection between the emergence of the warehouse clubs and Americans' unparalleled consumption levels? Since emerging in 1983, warehouse club growth has outpaced that of traditional grocery stores. Individual consumption in the US has grown concurrently. Using standard principles...

This research theorizes that sellers of durable goods can utilize inferences about the buyer's willingness to pay based not only on her decision to trade in the old good but also on its characteristics. We find empirical support for this theory using transaction data for new car purchases. The...

Consumers need not evaluate all available product information before making a purchase. This may arise because shopping environments prevent a full evaluation (e.g. online). We develop a model of simultaneous search in which consumers have limited ability in product evaluation in order to study...

An online shopping intermediary is an internet platform on which consumers and third-party sellers transact. Shopping intermediaries provide a search environment (e.g., search aids) to lower consumers’ search costs incurred when finding and evaluating sellers’ products. We study strategic...

This research studies the product line design problem when consumers are subject to perceptual errors when assessing their intrinsic preferences. If the errors are driven by common variables, then a firm can filter out the impact of these variables using aggregate consumer data (e.g. survey...

Evidence shows that marketers can direct consumers' limited attention to specific product attributes by making them “prominent”. This research asks: How should firms decide which attribute to make prominent in competitive environments? A key feature of this setting is that consumers'...

When consumers' inferences of their reservation values are subject to environmental noise, firms can obtain superior knowledge over consumers through customer data aggregation. Although the superior knowledge facilitates personalized pricing, it may also induce consumer suspicions of overpaying....

Ad content and viewer attention are strategically intertwined. Consumers watch an ad only if they expect sufficient benefit to doing so and advertisers structure ad content (information and entertainment) to make it attractive for consumer attention. We conceptualize these strategic interactions...

We consider a theoretical setting in which firms carry multiple products and consumers incur evaluation costs, not only across firms, but also within firms. Consumers judiciously decide the number of firms to include in their consideration sets as well as how many products from those firms. This...