33,080 research outputs found
Evaluating Pricing Strategy Using e-Commerce Data: Evidence and Estimation Challenges
As Internet-based commerce becomes increasingly widespread, large data sets
about the demand for and pricing of a wide variety of products become
available. These present exciting new opportunities for empirical economic and
business research, but also raise new statistical issues and challenges. In
this article, we summarize research that aims to assess the optimality of price
discrimination in the software industry using a large e-commerce panel data set
gathered from Amazon.com. We describe the key parameters that relate to demand
and cost that must be reliably estimated to accomplish this research
successfully, and we outline our approach to estimating these parameters. This
includes a method for ``reverse engineering'' actual demand levels from the
sales ranks reported by Amazon, and approaches to estimating demand elasticity,
variable costs and the optimality of pricing choices directly from publicly
available e-commerce data. Our analysis raises many new challenges to the
reliable statistical analysis of e-commerce data and we conclude with a brief
summary of some salient ones.Comment: Published at http://dx.doi.org/10.1214/088342306000000187 in the
Statistical Science (http://www.imstat.org/sts/) by the Institute of
Mathematical Statistics (http://www.imstat.org
Personality in Computational Advertising: A Benchmark
In the last decade, new ways of shopping online have increased the
possibility of buying products and services more easily and faster
than ever. In this new context, personality is a key determinant
in the decision making of the consumer when shopping. A person’s
buying choices are influenced by psychological factors like
impulsiveness; indeed some consumers may be more susceptible
to making impulse purchases than others. Since affective metadata
are more closely related to the user’s experience than generic
parameters, accurate predictions reveal important aspects of user’s
attitudes, social life, including attitude of others and social identity.
This work proposes a highly innovative research that uses a personality
perspective to determine the unique associations among the
consumer’s buying tendency and advert recommendations. In fact,
the lack of a publicly available benchmark for computational advertising
do not allow both the exploration of this intriguing research
direction and the evaluation of recent algorithms. We present the
ADS Dataset, a publicly available benchmark consisting of 300 real
advertisements (i.e., Rich Media Ads, Image Ads, Text Ads) rated
by 120 unacquainted individuals, enriched with Big-Five users’
personality factors and 1,200 personal users’ pictures
The Economics of Internet Markets
The internet has facilitated the creation of new markets characterized by large scale, increased customization, rapid innovation and the collection and use of detailed consumer and market data. I describe these changes and some of the economic theory that has been useful for thinking about online advertising markets, retail and business-to-business e-commerce, internet job matching and financial exchanges, and other internet platforms. I also discuss the empirical evidence on competition and consumer behavior in internet markets and some directions for future research.internet, market, innovation, advertising, retail, e-commerce, financial exchanges
A dynamic pricing model for unifying programmatic guarantee and real-time bidding in display advertising
There are two major ways of selling impressions in display advertising. They
are either sold in spot through auction mechanisms or in advance via guaranteed
contracts. The former has achieved a significant automation via real-time
bidding (RTB); however, the latter is still mainly done over the counter
through direct sales. This paper proposes a mathematical model that allocates
and prices the future impressions between real-time auctions and guaranteed
contracts. Under conventional economic assumptions, our model shows that the
two ways can be seamless combined programmatically and the publisher's revenue
can be maximized via price discrimination and optimal allocation. We consider
advertisers are risk-averse, and they would be willing to purchase guaranteed
impressions if the total costs are less than their private values. We also
consider that an advertiser's purchase behavior can be affected by both the
guaranteed price and the time interval between the purchase time and the
impression delivery date. Our solution suggests an optimal percentage of future
impressions to sell in advance and provides an explicit formula to calculate at
what prices to sell. We find that the optimal guaranteed prices are dynamic and
are non-decreasing over time. We evaluate our method with RTB datasets and find
that the model adopts different strategies in allocation and pricing according
to the level of competition. From the experiments we find that, in a less
competitive market, lower prices of the guaranteed contracts will encourage the
purchase in advance and the revenue gain is mainly contributed by the increased
competition in future RTB. In a highly competitive market, advertisers are more
willing to purchase the guaranteed contracts and thus higher prices are
expected. The revenue gain is largely contributed by the guaranteed selling.Comment: Chen, Bowei and Yuan, Shuai and Wang, Jun (2014) A dynamic pricing
model for unifying programmatic guarantee and real-time bidding in display
advertising. In: The Eighth International Workshop on Data Mining for Online
Advertising, 24 - 27 August 2014, New York Cit
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