Resource Competition, Amplification, and the Evolution of Performance Differences

Working Papers

How do ex ante similar firms develop heterogeneous resource positions that lead to persistent performance differences, even among direct competitors? The model in this paper shows that resource competition drives amplification of small differences in resource positions into large performance differences.Read More

Do Organic Results Help or Hurt Sponsored Search Performance?

Published Research

We study the impact of changes in the position of competing listings in organic search results on the performance of sponsored search advertisements. Using data for several keywords from an online retailer’s ad campaign, we measure the impact of organic competition on both click-through rate and conversion rate of sponsored search ads for these keywords.Read More

Neighborhood Social Capital and Social Learning for Experience Attributes of Products

Published Research

“Social learning” can occur when information is transferred from existing customers to potential customers. It is especially important in cases where the information that is conveyed pertains to experience attributes, i.e., attributes of products that cannot be fully verified prior to the first purchase.Read More

Social Learning and Trial on the Internet

Working Papers

Internet retail sales are impeded when consumers have difficulty acquiring information about non-digital product attributes. Firms therefore employ creative (and sometimes costly) methods such as two-way free shipping to help consumers resolve the problem of incomplete consumer knowledge on non-digital attributes.Read More