3,135 research outputs found
A De-biased Direct Question Approach to Measuring Consumers' Willingness to Pay
Knowledge of consumers' willingness to pay (WTP) is a prerequisite to
profitable price-setting. To gauge consumers' WTP, practitioners often rely on
a direct single question approach in which consumers are asked to explicitly
state their WTP for a product. Despite its popularity among practitioners, this
approach has been found to suffer from hypothetical bias. In this paper, we
propose a rigorous method that improves the accuracy of the direct single
question approach. Specifically, we systematically assess the hypothetical
biases associated with the direct single question approach and explore ways to
de-bias it. Our results show that by using the de-biasing procedures we
propose, we can generate a de-biased direct single question approach that is
accu-rate enough to be useful for managerial decision-making. We validate this
approach with two studies in this paper.Comment: Market Research, Pricing, Demand Estimation, Direct Estimation,
Single Question Approach, Choice Experiments, Willingness to Pay,
Hypothetical Bia
Economic Consequences of Online Tracking Restrictions: Evidence from Cookies
In recent years, European regulators have debated restricting the time an
online tracker can track a user to protect consumer privacy better. Despite the
significance of these debates, there has been a noticeable absence of any
comprehensive cost-benefit analysis. This article fills this gap on the cost
side by suggesting an approach to estimate the economic consequences of
lifetime restrictions on cookies for publishers. The empirical study on cookies
of 54,127 users who received 128 million ad impressions over 2.5 years yields
an average cookie lifetime of 279 days, with an average value of EUR 2.52 per
cookie. Only 13% of all cookies increase their daily value over time, but their
average value is about four times larger than the average value of all cookies.
Restricting cookies lifetime to one year (two years) decreases their lifetime
value by 25% (19%), which represents a decrease in the value of all cookies of
9% (5%). In light of the EUR 10.60 billion cookie-based display ad revenue in
Europe, such restrictions would endanger EUR 904 million (EUR 576 million)
annually, equivalent to EUR 2.08 (EUR 1.33) per EU internet user. The article
discusses these results' marketing strategy challenges and opportunities for
advertisers and publishers
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Numerical Modeling of Heat Transfer and Thermal Stress at the Czochralski Growth of Neodymium Scandate Single Crystals
The Czochralski growth of NdScO3 single crystals along the [110]-direction is numerically analyzed with the focus on the influence of the optical thickness on the shape of the crystal–melt interface and on the generation of thermal stresses. Due to lack of data, the optical thickness (i.e., the absorption coefficient) is varied over the entire interval between optically thin and thick. While the thermal calculation in the entire furnace is treated as axisymmetric, the stress calculation of the crystal is done three-dimensionally in order to meet the spatial anisotropy of thermal expansion and elastic coefficients. The numerically obtained values of the deflection of the crystal/melt interface meet the experimental ones for absorption coefficients in the range between 40 and 200 m−1. The maximum values of the von Mises stress appear for the case of absorption coefficient between 20 and 40 m−1. Applying absorption coefficients in the range between 3 and 100 m−1 leads to local peaks of high temperature in the shoulder region and the tail region near the end of the cylindrical part
The Impact of Privacy Laws on Online User Behavior
Policymakers worldwide draft privacy laws that require trading-off between
safeguarding consumer privacy and preventing economic loss to companies that
use consumer data. However, little empirical knowledge exists as to how privacy
laws affect companies' performance. Accordingly, this paper empirically
quantifies the effects of the enforcement of the EU's General Data Protection
Regulation (GDPR) on online user behavior over time, analyzing data from 6,286
websites spanning 24 industries during the 10 months before and 18 months after
the GDPR's enforcement in 2018. A panel differences estimator, with a synthetic
control group approach, isolates the short- and long-term effects of the GDPR
on user behavior. The results show that, on average, the GDPR's effects on user
quantity and usage intensity are negative; e.g., the numbers of total visits to
a website decrease by 4.9% and 10% due to GDPR in respectively the short- and
long-term. These effects could translate into average revenue losses of 2.5 million for ad-based websites
18 months after GDPR. The GDPR's effects vary across websites, with some
industries even benefiting from it; moreover, more-popular websites suffer
less, suggesting that the GDPR increased market concentration
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