Baohong Sun

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I n this paper, we develop a structural model of household behavior in an environment where there is uncertainty about brand attributes and both prices and advertising signal brand quality. Four quality signaling mechanisms are at work: (1) price signals quality, (2) advertising frequency signals quality, (3) advertising content provides direct (but noisy)(More)
and Vishal Singh are faculty members at the same University. All comments and suggestions can be directed to the second author via email at Abstract Unlike frequent price promotions, a publicly announced permanent price cut is more likely to cause consumers to strategically shift their decision rules to adapt to the new pricing regime.(More)
Many firms introduce electronic channels in addition to their traditional sales channels and observe increasing buyer usage immediately after the introduction but subsequent buyer usage declines. Firms must understand the underlying factors that drive channel usage and how these factors change over time and across buyers. Using panel data pertaining to the(More)
This paper discusses the role of agents' beliefs and their implications for the economic modeling of their behavior, in particular, their behavior over time. The paper also discusses the corresponding planning problems facing both firms and consumers in their current decision making. After a general discussion of the consumer and firm problem, we discuss(More)
W e estimate the joint impact of the frequency reward and customer tier components of a loyalty program on customer behavior and resultant sales. We provide an integrated analysis of a loyalty program incorporating customers' purchase and cash-in decisions, points pressure and rewarded behavior effects, heterogeneity, and forward-looking behavior. We focus(More)