Show simple item record

dc.contributor.authorHelmers, C.en
dc.contributor.authorKrishnan, P.en
dc.contributor.authorPatnam, M.en
dc.date.accessioned2016-04-22T15:01:56Z
dc.date.available2016-04-22T15:01:56Z
dc.date.issued2015-11-09en
dc.identifier.otherCWPE1532
dc.identifier.urihttps://www.repository.cam.ac.uk/handle/1810/255335
dc.description.abstractUsing high-frequency transaction-level data from an online retail store, we examine whether consumer choices on the internet are consistent with models of limited attention. We test whether consumers are more likely to buy products that receive a saliency shock when they are recommended by new products. To identify the saliency effect, we rely on i) the timing of new product arrivals, ii) the fact that new products are per se highly salient upon arrival, drawing more attention and iii) regional variation in the composition of recommendation sets. We find a sharp and robust 6% increase in the aggregate sales of existing products after they are recommended by a new product. To structurally disentangle the effect of saliency on a consumer's consideration and choice decision, we use data on individual transactions to estimate a probabilistic choice set model. We find that the saliency effect is driven largely by an expansion of consumers' consideration sets.en
dc.publisherFaculty of Economics
dc.relation.ispartofseriesCambridge Working Papers in Economics
dc.rightsAll Rights Reserveden
dc.rights.urihttps://www.rioxx.net/licenses/all-rights-reserved/en
dc.subjectLimited attentionen
dc.subjectadvertisingen
dc.subjectonline markets.en
dc.titleAttention and Saliency on the Internet: Evidence from an online recommendation systemen
dc.typeWorking Paperen
dc.identifier.doi10.17863/CAM.5803


Files in this item

Thumbnail

This item appears in the following Collection(s)

Show simple item record