Mobile apps is a highly competitive market and promotions is a way for apps to gain word-of-mouth. Our work tries to quantify the benefits and risks of various promotions and suggest ways to design them in ways that amplify the benefits and mitigate the risks. We study four promotions offered on Apple’s App Store that vary in scale, price discount and redemption procedure. We find that each of ...

In this paper we investigate experimentally if people search optimally and how price promotions in‡uence search behavior. We implement a sequential search task with exogenous price dispersion in a baseline treatment and introduce discounts in two experimental treatments. We …nd that search behavior is roughly consistent with optimal search but also observe some discount biases. If subjects don’...

In this research, an integrated supplier-buyer inventory system is studied when market demand is price-sensitive trapezoidal and units in inventory are subject to deterioration at a constant rate. The buyer has an option to choose between discount in unit price and delay in settling the account against the purchases made offered by the supplier. This type of trade credit is termed as ‘net credi...

We consolidate and generalize some results on price determination and ef®ciency in search equilibrium. Extending models by Rubinstein and Wolinsky and by Gale, heterogeneous buyers and sellers meet according to a general matching technology and prices are determined by a general bargaining condition. When the discount rate r and search costs converge to 0, we show that prices in all exchanges a...

This paper explores whether home buyers are myopic about future energy costs. I exploit variation in energy costs in the form of fuel price changes in Massachusetts where there is significant overlap in the geographic and age distributions of oil-heated homes and gas-heated homes. I find that relative fuel price shifts cause relative changes in housing transaction prices that are consistent wit...

A novel approach to pricing on data marketplaces is proposed, which is based on the Name Your Own Price (NYOP) principle: customers suggest their own price for a (relational) data product and in return receive a custom-tailored one. The result is a fair pricing scheme where sellers can achieve a higher revenue, while buyers receive a product which matches both their preferences and budget. NYOP...

Professor Einer Elhauge’s provocative article, Tying, Bundled Discounts, and the Death of the Single Monopoly Profit Theory, 123 Harv. L. Rev. 397 (2009), contests two propositions on which efficiency-minded antitrust scholars have largely agreed: (1) that there should be no tying liability absent substantial tied market foreclosure (a position contrary to the legal status quo), and (2) that co...

Recommender systems in the last decade opened new interactive channels between buyers and sellers leading to new concepts involved in the marketing strategies and remarkable positive gains in online sales. Businesses intensively aim to maintain customer loyalty, satisfaction and retention; such strategic longterm values need to be addressed by recommender systems in a more tangible and deeper m...

This paper constructs a new data set from art auctions that include auctioneer presale price estimates to examine the credulity of art investors. While auction houses typically made no price estimates before 1973, they start providing highand lowprice estimates for all artworks thereafter. Thus, we have a natural experiment to observe changes in price behavior under the influence of auctioneer ...

Firms engaged in consumer product sales often implement a strict make-to-stock approach, applying a single price to all customers. In such systems, customers can get the product at the given price upon availability on the shelf. However, consumers can often tolerate a delay between order placement and demand satisfaction under a price discount. Recognizing this phenomenon, a supplier may consid...