The Role of the Mangement Sciences in Research on Personalization

We present a review of research studies that deal with personalization. We synthesize current knowledge about these areas, and identify issues that we envision will be of interest to researchers working in the management sciences. We take an interdisciplinary approach that spans the areas of economics, marketing, information technology, and operations. We present an overarching framework for personalization that allows us to identify key players in the personalization process, as well as, the key stages of personalization. The framework enables us to examine the strategic role of personalization in the interactions between a firm and other key players in the firm's value system. We review extant literature in the strategic behavior of firms, and discuss opportunities for analytical and empirical research in this regard. Next, we examine how a firm can learn a customer's preferences, which is one of the key components of the personalization process. We use a utility-based approach to formalize such preference functions, and to understand how these preference functions could be learnt based on a customer's interactions with a firm. We identify well-established techniques in management sciences that can be gainfully employed in future research on personalization.CRM, Persoanlization, Marketing, e-commerce,

The reaction of consumer spending and debt to tax rebates – evidence from consumer credit data

We use a new panel dataset of credit card accounts to analyze how consumers responded to the 2001 federal income tax rebates. We estimate the monthly response of credit card payments, spending, and debt, exploiting the unique, randomized timing of the rebate disbursement. We find that on average consumers initially saved some of the rebate, by increasing their credit card payments and thereby paying down debt. But soon afterwards spending increased, counter to the canonical Permanent-Income model. For people whose most intensively used credit card account is in the sample, spending on that account rose by over $200 cumulatively over the nine months after rebate receipt, which represents over 40% of the average household rebate. Because these results relied exclusively on exogenous, randomized variation, they represent compelling evidence of a causal link from the rebate to spending. ; Further, we found significant heterogeneity in the response to the rebate across different types of consumers. Notably, spending rose most for consumers who were initially most likely to be liquidity constrained according to various criteria, for example consumers who appeared to be initially constrained by their credit limits (before making additional payments). By contrast, debt declined most (so saving rose most) for unconstrained consumers. These results suggest that liquidity constraints are important. More generally, we found that there can be important dynamics in consumers’ response to ‘lumpy’ increases in income like tax rebates, working in part through balance sheet (liquidity) mechanisms.Consumer behavior ; Consumer credit ; Credit cards

Modeling Magnetic Anisotropy of Single Chain Magnets in ∣d/J∣≥1|d/J| \geq 1 Regime

Single molecule magnets (SMMs) with single-ion anisotropies $\mathbf d$, comparable to exchange interactions J, between spins have recently been synthesized. In this paper, we provide theoretical insights into the magnetism of such systems. We study spin chains with site spins, s=1, 3/2 and 2 and on-site anisotropy $\mathbf d$ comparable to the exchange constants between the spins. We find that large $\mathbf d$ leads to crossing of the states with different $M_S$ values in the same spin manifold of the $\mathbf d = 0$ limit. For very large $\mathbf d$'s we also find that the $M_S$ states of the higher energy spin states descend below the $M_S$ states of the ground state spin manifold. Total spin in this limit is no longer conserved and describing the molecular anisotropy by the constants $D_M$ and $E_M$ is not possible. However, the total spin of the low-lying large $M_S$ states is very nearly an integer and using this spin value it is possible to construct an effective spin Hamiltonian and compute the molecular magnetic anisotropy constants $D_M$ and $E_M$. We report effect of finite sizes, rotations of site anisotropies and chain dimerization on the effective anisotropy of the spin chains

The Reaction of Consumer Spending and Debt to Tax Rebates -- Evidence from Consumer Credit Data

We use a new panel dataset of credit card accounts to analyze how consumers responded to the 2001 Federal income tax rebates. We estimate the monthly response of credit card payments, spending, and debt, exploiting the unique, randomized timing of the rebate disbursement. We find that, on average, consumers initially saved some of the rebate, by increasing their credit card payments and thereby paying down debt. But soon afterwards their spending increased, counter to the canonical Permanent-Income model. Spending rose most for consumers who were initially most likely to be liquidity constrained, whereas debt declined most (so saving rose most) for unconstrained consumers. More generally, the results suggest that there can be important dynamics in consumers' response to "lumpy" increases in income like tax rebates, working in part through balance sheet (liquidity) mechanisms.

Modeling Molecular Magnets with Large Exchange and On-Site Anisotropies

Spins in molecular magnets can experience both anisotropic exchange interactions and on-site magnetic anisotropy. In this paper we study the effect of exchange anisotropy on the molecular magnetic anisotropy both with and without on-site anisotropy. When both the anisotropies are small, we find that the axial anisotropy parameter $D_M$ in the effective spin Hamiltonian is the sum of the individual contributions due to exchange and on-site anisotropies. We find that even for axial anisotropy of about $15\%$, the low energy spectrum does not correspond to a single parent spin manifold but has intruders states arising from other parent spin. In this case, the low energy spectrum can not be described by an effective Hamiltonian spanning the parent spin space. We study the magnetic susceptibility, specific heat as a function of temperature and magnetization as a function of applied field to characterize the system in this limit. We find that there is synergy between the two anisotropies, particularly for large systems with higher site spins.Comment: 30 pages, 11 figures and 3 tables. Supporting information included after the main articl

Do consumers choose the right credit contracts?

We find that on average consumers chose the contract that ex post minimized their net costs. A substantial fraction of consumers (about 40%) still chose the ex post sub-optimal contract, with some incurring hundreds of dollars of avoidable interest costs. Nonetheless, the probability of choosing the sub-optimal contract declines with the dollar magnitude of the potential error, and consumers with larger errors were more likely to subsequently switch to the optimal contract. Thus most of the errors appear not to have been very costly, with the exception that a small minority of consumers persists in holding substantially sub-optimal contracts without switching. Klassifikation: G11, G21, E21, E5

Boosts, Schwarzschild Black Holes and Absorption cross-sections in M theory

$D$ dimensional neutral black strings wrapped on a circle are related to $(D-1)$ dimensional charged black holes by boosts. We show that the boost has to be performed in the covering space and the boosted coordinate has to be compactified on a circle with a Lorentz contracted radius. Using this fact we show that the transition between Schwarzschild black holes to black p-branes observed recently in M theory is the well-known black hole- black string transition viewed in a boosted frame. In a similar way the correspondence point where an excited string state goes over to a neutral black hole is mapped exactly to the correspondence point for black p-branes. In terms of the $p$ brane quantities the equation of state for an excited string state becomes identical to that of a 3+1 dimensional massless gas for all $p$. Finally, we show how boosts can be used to relate Hawking radiation rates. Using the known microscopic derivation of absorption by extremal 3-branes and near-extremal 5D holes with three large charges we provide a microscopic derivation of absorption of 0-branes by seven and five dimensional Schwarzschild black holes in a certain regime.Comment: Some references added, minor clarifications (harvmac, 16 pages