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  • 05 Mar 2009
  • Working Paper Summaries

CPC/CPA Hybrid Bidding in a Second Price Auction

Keywords: by Benjamin Edelman & Hoan Soo Lee
  • August 2014
  • Case

Netflix in 2011

By: Willy Shih and Stephen Kaufman
Reed Hastings founded Netflix to provide a home movie service that would do a better job satisfying customers than the traditional retail rental model. But as it encountered challenges it underwent several major strategy shifts, ultimately developing a business model... View Details
Keywords: Netflix; DVD; DVD-by-mail; Streaming; Online Entertainment; Online Video; Disruptive Innovation; Innovation and Management; Innovation Strategy; Business Model; Disruption; Operations; Service Operations; Entertainment; Film Entertainment; Television Entertainment; Media; Strategy; Business or Company Management; Competitive Strategy; Competitive Advantage; Corporate Strategy; Expansion; Technology; Technology Adoption; Technology Platform; Web; Entertainment and Recreation Industry; United States
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Shih, Willy, and Stephen Kaufman. "Netflix in 2011." Harvard Business School Case 615-007, August 2014.
  • November 23, 2022
  • Article

The Sinister Logic of Hidden Online Fees

By: Michael Luca
Keywords: Consumer Behavior; E-commerce; Price
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Luca, Michael. "The Sinister Logic of Hidden Online Fees." Wall Street Journal (online) (November 23, 2022).
  • June 2002 (Revised September 2005)
  • Case

Online Music Distribution in a Post-Napster World

By: Youngme E. Moon
Provides a description of the rise and decline of Napster, the free Internet music-swapping service. Also describes second-generation peer-to-peer services (e.g., Gnutella) as well as paid subscription services (e.g., MusicNet, pressplay). View Details
Keywords: Distribution; Internet and the Web; Price; Marketing Channels; Service Operations; Music Industry
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Moon, Youngme E. "Online Music Distribution in a Post-Napster World." Harvard Business School Case 502-093, June 2002. (Revised September 2005.)
  • 05 Mar 2019
  • Working Paper Summaries

The Impacts of Increasing Search Frictions on Online Shopping Behavior: Evidence from a Field Experiment

Keywords: by Donald Ngwe, Kris J. Ferreira, and Thales Teixeira; Retail; Apparel & Accessories; Consumer Products
  • 2025
  • Working Paper

Markups and Cost Pass-through Along the Supply Chain

By: Santiago Alvarez-Blaser, Alberto Cavallo, Alexander MacKay and Paolo Mengano
We study markups and pricing strategies along the supply chain. Our unique dataset combines detailed price and cost information from a large global manufacturer with matched retail prices collected online for the period July 2018 through June 2023. We show that total... View Details
Keywords: Markups; Pricing; Price; Supply Chain; Inflation and Deflation; Cost
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Alvarez-Blaser, Santiago, Alberto Cavallo, Alexander MacKay, and Paolo Mengano. "Markups and Cost Pass-through Along the Supply Chain." Harvard Business School Working Paper, No. 25-009, August 2024. (Revised February 2025.)
  • December 2009
  • Article

Who Owns Metrics?: Building a Bill of Rights for Online Advertisers

By: Benjamin Edelman
I offer five rights to protect advertisers from increasingly powerful ad networks-avoiding fraudulent charges for services not rendered, guaranteeing data portability so advertisers get the best possible value, and assuring price transparency so advertisers know what... View Details
Keywords: Online Advertising; Crime and Corruption; Price; Measurement and Metrics; Technology Networks; Value; Advertising Industry
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Edelman, Benjamin. "Who Owns Metrics?: Building a Bill of Rights for Online Advertisers." Journal of Advertising Research 49, no. 4 (December 2009). (Adapted from Towards a Bill of Rights for Online Advertisers.)
  • 12 Aug 2008
  • Op-Ed

Google-Yahoo Ad Deal is Bad for Online Advertising

The Subcommittee: My name is Benjamin Edelman. I am an assistant professor at the Harvard Business School, where my research focuses on the design of electronic marketplaces, including designing online marketplaces to assure safety,... View Details
Keywords: by Benjamin G. Edelman; Advertising; Publishing
  • Article

Currency Unions, Product Introductions, and the Real Exchange Rate

By: Alberto Cavallo, Brent Neiman and Roberto Rigobon
We use a novel dataset of online prices of identical goods sold by four large global retailers in dozens of countries to study good-level real exchange rates and their aggregated behavior. First, in contrast to the prior literature, we demonstrate that the law of one... View Details
Keywords: Currency Union; Law Of One Price; International Prices; Global Firm; Currency Exchange Rate; Price; International Finance
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Cavallo, Alberto, Brent Neiman, and Roberto Rigobon. "Currency Unions, Product Introductions, and the Real Exchange Rate." Quarterly Journal of Economics 129, no. 2 (May 2014): 529–595.
  • March 2016 (Revised May 2018)
  • Case

ASOS PLC

By: John R. Wells and Gabriel Ellsworth
Launched in 2000, ASOS was one of the world’s largest online fashion specialists in 2018. Focusing on young consumers aged 16–25 years, the company offered over 85,000 items on its websites, many times more than the largest fashion stores, and added several thousand... View Details
Keywords: ASOS; AsSeenOnScreen; Online Fashion; Online Apparel; Nick Beighton; Nick Robertson; E-commerce; E-Commerce Strategy; Online Retail; Multichannel Retailing; Omnichannel; Social Media; Marketplaces; Shipping; Advertising; Digital Marketing; Business Growth and Maturation; Business Model; Business Startups; For-Profit Firms; Customer Focus and Relationships; Age; Gender; Currency Exchange Rate; Profit; Revenue; Geography; Geographic Scope; Global Range; Global Strategy; Globalized Firms and Management; Globalized Markets and Industries; Business History; Selection and Staffing; Journals and Magazines; Human Capital; Business or Company Management; Crisis Management; Goals and Objectives; Growth and Development; Growth and Development Strategy; Growth Management; Management Succession; Brands and Branding; Marketing Channels; Marketing Communications; Marketing Strategy; Product Positioning; Social Marketing; Media; Distribution; Distribution Channels; Order Taking and Fulfillment; Infrastructure; Logistics; Public Ownership; Problems and Challenges; Strategy; Adaptation; Business Strategy; Competition; Competitive Strategy; Corporate Strategy; Expansion; Vertical Integration; Segmentation; Internet and the Web; Mobile and Wireless Technology; Apparel and Accessories Industry; Fashion Industry; Retail Industry; United Kingdom; England; London
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Wells, John R., and Gabriel Ellsworth. "ASOS PLC." Harvard Business School Case 716-449, March 2016. (Revised May 2018.)
  • Article

Distance and Political Boundaries: Estimating Border Effects under Inequality Constraints

By: Fernando Borraz, Alberto Cavallo, Roberto Rigobon and Leandro Zipitria
The border effects literature finds that political boundaries have a large impact on relative prices across locations. In this paper we show that the standard empirical specification suffers from selection bias, and propose a new methodology based on binned-quantile... View Details
Keywords: Border Effects; Prices
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Borraz, Fernando, Alberto Cavallo, Roberto Rigobon, and Leandro Zipitria. "Distance and Political Boundaries: Estimating Border Effects under Inequality Constraints." International Journal of Finance & Economics 21, no. 1 (January 2016): 3–35.
  • November 2021
  • Article

Ratings, Reviews, and the Marketing of New Products

By: Itay P. Fainmesser, Dominique Olié Lauga and Elie Ofek
We study how user-generated content (UGC) about new products impacts a firm's advertising and pricing decisions and the effect on profits and market dynamics. We construct a two-period model where consumers value quality and are heterogeneous in their taste for the new... View Details
Keywords: Online Reviews; Product Ratings; Social Networks; Word Of Mouth; Pricing; User-generated Content; Advertising; Product Marketing; Price; Consumer Behavior; Product Positioning; Social Media
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Fainmesser, Itay P., Dominique Olié Lauga, and Elie Ofek. "Ratings, Reviews, and the Marketing of New Products." Management Science 67, no. 11 (November 2021): 7023–7045.
  • July 2020
  • Teaching Note

Shindigz

By: Frank Cespedes
Teaching Note for HBS Case No. 819-010. Shindigz sells party and celebratory items through its branded direct online channel, third-party retail and wholesale channels, and online marketplaces. Shindigz has for decades successfully executed a premium-priced branded... View Details
Keywords: Ecommerce; Pricing; Price; Strategy; Decision Making; Distribution Channels; Brands and Branding; E-commerce; Consumer Products Industry
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Cespedes, Frank. "Shindigz." Harvard Business School Teaching Note 821-024, July 2020.
  • August 2014 (Revised March 2015)
  • Case

Reinventing Retail: ShopRunner's Network Bet

By: Benjamin Edelman and Karen Webster
ShopRunner considers adjustments to improve its online shopping service which offers no-charge two-day shipping as well as easy returns and other conveniences. Competitors' diverse pricing models and ancillary benefits raise questions about how to structure and price... View Details
Keywords: Shopping Club; Coop; Pricing; Shipping; Marketing Channels; Global Strategy; Order Taking and Fulfillment; Information Technology Industry; Retail Industry; United States; China
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Edelman, Benjamin, and Karen Webster. "Reinventing Retail: ShopRunner's Network Bet." Harvard Business School Case 915-002, August 2014. (Revised March 2015.) (request a courtesy copy.)
  • 12 Apr 2022
  • Research & Ideas

Swiping Right: How Data Helped This Online Dating Site Make More Matches

objective criteria such as price or venue. But what happens when emotion fuels the process? Could it increase efficiency and engagement? Edward McFowland III, assistant professor at Harvard Business School, and his coauthors examine this... View Details
Keywords: by Kara Baskin
  • 10 Feb 2022
  • Research & Ideas

Why Are Prices So High Right Now—and Will They Ever Return to Normal?

70 large retailers using PriceStats, a firm Cavallo co-founded in 2010. In all, researchers examined nearly 2 million products sold online and in brick-and-mortar stores in seven countries, including more than 777,000 in the United... View Details
Keywords: by Rachel Layne
  • April 2015 (Revised March 2017)
  • Case

Instacart and the New Wave of Grocery Startups

By: John Deighton and Leora Kornfeld
Instacart is testing an Uber-style solution to the challenge of building a home-delivered grocery business. It is backed by $220 million of venture funding. Will this model succeed where businessses like Webvan failed? What are the questions that this exploratory... View Details
Keywords: Food Retailing; Outsourced Grocery Delivery; Online Ordering; Dynamic Pricing; Data Analytics; Marketing Strategy; Food; Distribution Channels; Business Startups; Food and Beverage Industry; California
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Deighton, John, and Leora Kornfeld. "Instacart and the New Wave of Grocery Startups." Harvard Business School Case 515-089, April 2015. (Revised March 2017.)
  • 07 Apr 2016
  • Working Paper Summaries

Strategic Channel Selection with Online Platforms: An Empirical Analysis of the Daily Deal Industry

Keywords: by Lingling Zhang and Doug J. Chung; Retail
  • 09 Dec 2015
  • Research Event

How Do You Predict Demand and Set Prices For Products Never Sold Before?

predictive and prescriptive analytics can be combined to develop a tactical decision-making tool that makes a big impact on the bottom line. For details about the research and the successful machine learning tool, see the paper “Analytics for an View Details
Keywords: by Carmen Nobel; Retail; Apparel & Accessories
  • March 2007
  • Article

Internet Advertising and the Generalized Second Price Auction: Selling Billions of Dollars Worth of Keywords

By: Benjamin Edelman, Michael Ostrovsky and Michael Schwarz
We investigate the "generalized second-price" auction (GSP), a new mechanism used by search engines to sell online advertising. Although GSP looks similar to the Vickrey-Clarke-Groves (VCG) mechanism, its properties are very different. Unlike the VCG mechanism, GSP... View Details
Keywords: Auctions; Search Technology; Online Advertising; Strategy; Balance and Stability
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Edelman, Benjamin, Michael Ostrovsky, and Michael Schwarz. "Internet Advertising and the Generalized Second Price Auction: Selling Billions of Dollars Worth of Keywords." American Economic Review 97, no. 1 (March 2007): 242–259. (Winner of the 2013 Prize in Game Theory and Computer Science from the Game Theory Society - for "the best paper at the interface of game theory and computer science in the last decade." Winner of the 2018 SIGecom Test of Time Award from the ACM Special Interest Group on E-Commerce - for "an influential paper or series of papers published between ten and twenty-five years ago that has significantly impacted research or applications exemplifying the interplay of economics and computation.")
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