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Selected recent publications in the top management and economics journals

Frontiers: Virus Shook the Streaming Star: Estimating the COVID-19 Impact on Music Consumption

( Sim, Jaeung | Cho, Daegon | Hwang, Youngdeok | Telang, Rahul )

MARKETING SCIENCE2022-01

Abstract

Many have speculated that the recent outbreak of COVID-19 has led to a surge in the use of online streaming services. However, this assumption has not been closely examined for music streaming services, the consumption patterns of which can be different from video streaming services. To provide insights into this question, we analyze Spotify’s streaming data for weekly top 200 songs for two years in 60 countries between June 2018 and May 2020, along with varying lockdown policies and detailed daily mobility information from Google. Empirical evidence shows that the COVID-19 outbreak significantly reduced music streaming consumption in many countries. We also find that countries with larger mobility decreases saw more notable downturns in streaming during the pandemic. Further, we reveal that the mobility effect was attributable to the complementarity of music consumption to other activities and likely to be transient rather than irreversible. Alternative mechanisms, such as unobservable Spotify-specific factors, a demand shift from top-selling songs to niche music, and supply-side effects, did not explain the decline in music consumption.

Home-Tutoring Services Assisted with Technology: Investigating the Role of Artificial Intelligence Using a Randomized Field Experiment

( Kim, Jun Hyung | Kim, Minki | Kwak, Do Won | Lee, Sol )

JOURNAL OF MARKETING RESEARCH2022-01

Abstract

Despite a rising interest in artificial intelligence (AI) technology, research in services marketing has not evaluated its role in helping firms learn about customers' needs and increasing the adaptability of service employees. Therefore, the authors develop a conceptual framework and investigate whether and to what extent providing AI assistance to service employees improves service outcomes. The randomized controlled trial in the context of tutoring services shows that helping service employees (tutors) adapt to students' learning needs by providing AI-generated diagnoses significantly improves service outcomes measured by academic performance. However, the authors find that some tutors may not utilize AI assistance (i.e., AI aversion), and factors associated with unforeseen barriers to usage (i.e., technology overload) can moderate its impact on outcomes. Interestingly, tutors who significantly contribute to the firm's revenue relied heavily on AI assistance but unexpectedly benefited little from AI in improving service outcomes. Given the wide applicability of AI assistance in a variety of services marketing contexts, the authors suggest that firms should consider the potential difficulties employees face in using the technology rather than encourage them to use it as it is.

Frontiers: Virus Shook the Streaming Star: Estimating the COVID-19 Impact on Music Consumption

( Sim, Jaeung | Cho, Daegon | Hwang, Youngdeok | Telang, Rahul )

MARKETING SCIENCE2022-01

Abstract

Many have speculated that the recent outbreak of COVID-19 has led to a surge in the use of online streaming services. However, this assumption has not been closely examined for music streaming services, the consumption patterns of which can be different from video streaming services. To provide insights into this question, we analyze Spotify’s streaming data for weekly top 200 songs for two years in 60 countries between June 2018 and May 2020, along with varying lockdown policies and detailed daily mobility information from Google. Empirical evidence shows that the COVID-19 outbreak significantly reduced music streaming consumption in many countries. We also find that countries with larger mobility decreases saw more notable downturns in streaming during the pandemic. Further, we reveal that the mobility effect was attributable to the complementarity of music consumption to other activities and likely to be transient rather than irreversible. Alternative mechanisms, such as unobservable Spotify-specific factors, a demand shift from top-selling songs to niche music, and supply-side effects, did not explain the decline in music consumption.

Reviewing Before Reading? An Empirical Investigation of Book-Consumption Patterns and Their Effects on Reviews and Sales

( Lee, Heeseung Andrew | Choi, Angela Aerry | Sun, Tianshu | Oh, Wonseok )

INFORMATION SYSTEMS RESEARCH2021-12

Abstract

Over the past decades, research on online book reviews has inundated academic circles with numerous theoretical reflections and empirical manifestations aimed at explaining the effects of such resources on business performance. Yet, these studies succumbed to the conventional pitfall of assuming that consumers write reviews only after they fully read the book that they purchased. A recent industry report revealed that although many individuals initiate book reading, only a few finish them. With these considerations in mind, we investigated how consumers' book-consumption patterns affect their review behaviors and how reviews generated from incomplete consumption influence subsequent sales. We used expectation confirmation theory (ECT) as a theoretical foundation to elaborate on the review behaviors of consumers at various stages of their e-book consumption. On the basis of ECT, we argue that customers can submit reviews not necessarily after full consumption, but at any point during this trajectory, and even when consumption has yet to take place. Consumption patterns were traced and captured from records of reading activities on e-book devices and apps. Our results indicate that a considerable number of consumers provide positive reviews even before initiating reading or after progressing up to an extremely early section of a book. In addition, the relationship between review valence and completion rate can be characterized as a U-shaped pattern, given that reviews arising from negative disconfirmations occur more frequently than those emerging out of positive disconfirmations. The findings also uncover that customers occupying the extreme ends of the completion continuum provide less extreme review ratings. The effect of completion rate on review length is significantly positive. Our text-analysis results suggest that reviews based on sufficient consumption contain more useful insights than do those grounded in incomplete consumption. Moreover, review comments formed after incomplete consumption adversely affect subsequent sales. Finally, we discuss a number of our findings' implications and provide actionable recommendations that can aid platforms in their efforts to refine their online-review systems and policies in pursuit of enhanced credibility in peer evaluation.

Gradual bargaining in decentralized asset markets

( Rocheteau, Guillaume | Hu, Tai-Wei | Lebeau, Lucie | In, Younghwan )

REVIEW OF ECONOMIC DYNAMICS2021-10

Abstract

We introduce a new approach to bargaining, with strategic and axiomatic foundations, into models of decentralized asset markets. According to this approach, which encompasses the Nash (1950) solution as a special case, bilateral negotiations follow an agenda that partitions assets into bundles to be sold sequentially. We construct two alternating-offer games consistent with this approach and characterize their subgame perfect equilibria. We show the revenue of the asset owner is maximized when assets are sold one infinitesimal unit at a time. In a general equilibrium model with endogenous asset holdings, gradual bargaining reduces asset misallocation and prevents market breakdowns. ⓒ 2020 Elsevier Inc.

Contact : Joo, Sunhee ( shjoo2006@kaist.ac.kr )

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