Joint product display in videos may help customers to not only evaluate the attributes of products that can influence their individual demands (direct effect) but also learn about the complementarity between them that may cause additional correlation in their demands (spillover effect). To estimate the demand effects, we introduced videos displaying apparel with matching accessories for few ran...

This article shows through a simple model that there is a monotonic relationship between the competitiveness of the product market and firms’ demand for insurance. The more competitive the product market is, the more likely firms competing in the market will acquire insurance or purchase full coverage. This holds true no matter whether firms exhibit risk aversion or not in their preferences. In...

Consumers’uncertainty regarding their future needs generates demand for options to utilize different products. Such options are commonly sold in the form of insurance. A prime example for option demand presents in health care markets and other repair markets. This work studies two-dimensional spatial competition between medical providers who choose their geographical location and medical-care s...

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Planning during the product life cycle (PLC) poses a number of challenges for managers due to the pace of change and uncertainties in the marketplace. The ability to better understand, predict, and make decisions based on manifestations of demand forms a set of important operational problems that ultimately affect the profitability of enterprises. This paper models the stochastic diffusion of a...

Most models of product adoption predict S-shaped adoption curves. Here we report results from two country-scale experiments in which we find linear adoption curves. We show evidence that the observed linear pattern is the result of active information-seeking behaviour: individuals actively pulling information from several central sources facilitated by modern Internet searches. Thus, a constant...

This paper investigates the evolution of firm-level price and quality decisions in export markets. We develop a model of heterogeneous firms which endogenously choose their optimal price and product quality to build demand in each export market. Consistent with existing research, more productive firms produce higher quality products, charge higher prices, sell more units and achieve higher prof...

In many service industries, the firm adjusts the product price dynamically by taking into account the current product inventory and the future demand distribution. Because the firm can easily monitor the product inventory, the success of dynamic pricing relies on an accurate demand forecast. In this paper, we consider a situation where the firm does not have an accurate demand forecast, but can...

Estimating the aggregated market demand for a product in a dynamic market is critical to manufacturers and retailers. Motivated by the need for a statistical demand prediction model for laptop pricing at Hewlett-Packard, we have developed a novel boosting-based varying-coefficient regression model. The developed model uses regression trees as the base learner, and is generally applicable to var...