Our paper on the welfare properties of recommender systems will be presented at CODE@MIT. This paper shows that firms may hurt consumers when they manipulate recommender systems in ways that maximize profits. We use results from a randomized experiment in which we changed price and search cost simultaneously to measure demand. Then we resort to simulations to claim our results. Our paper on the effects of Time-Shift TV (TSTV) on how users consume media will also be presented at CODE@MIT. In this paper we show that giving TV channels for free to consumers with TSTV reduces Internet consumption, VoD revenues and theatrical revenues. We claim these substitution effects by looking at outcomes of a randomized experiment in which we awarded TV channels to consumers. Finally, our paper on the effects of pro-active churn management will also be presented at CODE@MIT. In this paper, we resort to outcomes of a randomized experiment in a network setting to show that firms can benefit largely from pro-actively calling likely churners and more so when social network data is taken into account.
Our paper on the effect of Time-Shift TV (TSTV) on TV consumption has been accepted for presentation at the 2015 Conference on Information Systems and Technology. This paper uses data from a randomized experiment to show that offering attractive TV channels to consumers increases TV viewership only if these channels can be watched in time-shift. We also show that in this case TV substitutes some Internet consumption. This provides some evidence that TV can fight against Internet video streaming when it emulates the later and, for example, offers more flexibility than linear TV.
Our paper showing that friends affect where one works has been conditionally accepted for presentation at the 2015 International Conference on Information Systems. This paper uses millions of call detailed records from a major cell-phone provider to infer social proximity and shows that friends who live close by are more likely to also work close by or even in the same company relative to people that just live close by. A number of robustness checks are used to alleviate endogeneity concerns, such as using distance between workplace and home to mediate the above mentioned relationship.
Our paper showing that wiring schools with broadband has a significant impact of household Internet penetration has been accepted for publication at Management Science. This paper shows that children play a crucial role in activating spillovers from school to home in Internet usage. We provide a theoretical model for how these spillovers may occur and using two sets of instrumental variables we identify them as well as the spillovers from neighboring households.
Our paper on the effect of television content on pirates online activities will open the 2015 NBER Summer Institute Workshop on Economics of IT and Digitization. In this paper we show heterogeneous effects at the individual level in terms of how users substitute between TV content and video consumption over the Internet. We use results from a randomized field experiment to show that heavy Internet users shift their pirating activities to different content once offered new attractive TV content (movies and shows) for free. We also show that once these free offers end they go back to pirating such content. A draft of this paper will be available soon.
Our paper on the welfare impact of recommender systems will be presented in the first session of 11th Symposium on Statistical Challenges in Electronic Commerce Research. This paper shows that recommender systems designed by firms to maximize profits may hurt consumers. We also provide empirical measurements of such effect using results from a randomized experiment in video on demand. A draft of this paper will be available soon.
Ryan Turner defended his PhD thesis on ICT and Peer Effects on Academic Performance in a University Setting: Evidence from Portugal and graduated from the Department of Engineering and Public Policy.
Our paper on the value of pro-active churn management has been accepted for presentation at the 13th ZEW Conference on the Economics of Information and Communication Technologies. In this paper, using results from a large-scale randomized experiment run at a major European telecommunications service provider, we show that pro-active churn can increase consumer life-time value in 6%. This statistic increases to 7% when social network data are taken into account.
Filipa Reis defended her research paper on patterns of substitution between TV and Internet consumption. Internet users substitute Internet for TV when new quality channels are given for free.
Pedro will give a talk on Large-scale Randomized Experiments at the Workshop on Big Data for Social Policy as part of the Thematic Program on Statistical Inference, Learning, and Models for Big Data.
H. John Heinz III College
Department of Engineering and Public Policy
3042 Hamburg Hall
Carnegie Mellon University
5000 Forbes Avenue, Pittsburgh, PA 15213
H. John Heinz III College
3004 Hamburg Hall
Carnegie Mellon University
5000 Forbes Avenue
Pittsburgh, PA 15213