【主讲】Xin Li （李昕），香港城市大学副教授
Xin is an Associate Professor in the Department of Information Systems at City University of Hong Kong. His research area is on Data Science, Social Media & Social Network, Applied Econometrics, and E-commerce. His works are published on MISQ, ISR, JMIS, INFORMS JOC, DSS, I&M, among others. He is an associate editor of INFORMS Journal on Computing and ACM Transaction on MIS, and a Senior Editor of Information Technology & People. He is a senior member of IEEE, and ACM, and a member of AIS.
【Speaker】Xin Li, Associate Professor，City University of Hong Kong
【Topic】Online Product Reviews-Triggered Dynamic Pricing: Theory and Evidence
【Time】Friday, Dec. 21, 2018, 10:30-12:00
【Venue】Room 404, Weilun Building, Tsinghua SEM
【Abstract】 Prior works offer compelling evidence that on the demand side of the market, user-generated online product reviews play a very important role in informing consumers' purchase decisions. On the supply side, however, the interplay between online product reviews and firm strategies is less understood. We build an analytical model that differentiates products based on consumers' preference for tastes (horizontal differentiation) or quality (vertical differentiation) and show that a firm is able to not only manipulate its pricing to influence online product reviews (thus influencing sales), but also adjust pricing dynamically in response to online word-of-mouth. Our model derives rich and testable results on possible price trajectories. To offer empirical support for the analytical predictions, we conduct a panel data study of prices and reviews. We adopt a difference-in-difference framework to address endogeneity challenges.