Earning the Reputation
Externalities of Violence: The Effects of National Hockey League Fighting on Youth Hockey Participation
Derek Kellenberg & Matthew Taylor
Journal of Sports Economics, forthcoming
Abstract:
Prior research has focused on the effects of National Hockey League (NHL) fights on fan attendance and profits of NHL teams. We examine the potentially larger external costs of fighting in the NHL on youth hockey participation in the United States and Canada. Using an instrumental variables approach we find that the number of NHL fights in a season has a significant negative effect on male youth hockey participation in the United States, but less definitive effects in Canada or on female youth participation. These negative impacts on US youth hockey participation have meaningful subsequent impacts on revenue for USA Hockey and local youth hockey organizations and businesses.
Non-User Utility and Market Power: The Case of Smartphones
Leonardo Bursztyn et al.
NBER Working Paper, April 2025
Abstract:
Firms can increase the demand for their products and consolidate their market power not only by increasing user utility but also by decreasing non-user utility. In this paper, we examine this mechanism by considering the case of smartphones. In particular, Apple has faced criticism for allegedly degrading the Android user experience by making messages to Android devices appear as green bubbles on iPhones -- a salient signal often perceived as reflecting a lower socioeconomic status. Using samples of US college students, we show that green bubbles are widely stigmatized and that a majority of both iPhone and Android users would prefer green bubbles to no longer exist. We then conduct an incentivized deactivation experiment, revealing that iPhone users have a significant willingness to pay to prevent their messages from appearing as green bubbles on other iPhones. Next, we examine the market implications of non-user utility and find that respondents are substantially more likely to choose an Android over an iPhone when green bubbles are removed. We conclude by presenting case studies that illustrate how companies use product features to reduce non-user utility in various markets.
Kick the Cat? Retail Investors Displaced Aggression: Evidence from Amazon Product Ratings
Yanhui Zhao & Siqi Wei
University of Wisconsin Working Paper, June 2024
Abstract:
We present novel findings that the e-commerce market reflects retail investors' displaced aggression behavior. Market return fluctuations substantially impact the distribution of ratings left by Amazon customers, most of whom invest in equity market, directly or indirectly (defined as reviewer-investors). One standard-deviation decrease in market return leads to a 1.23% reduction in the daily average rating over the following day. Reviewer-investors respond to stock market losses and gains asymmetrically: investors only react to stock market losses. Our findings are consistent with investors' recursive preferences focusing on the trade-off between current period utility and the certainty equivalent of random future utility.
The Effects of Delay in Bargaining: Evidence from eBay
Jessica Fong & Caio Waisman
Management Science, forthcoming
Abstract:
Delay in negotiations is common in many settings, but the effects of delay have rarely been studied empirically in the field. We measure the causal effects of delay on bargaining outcomes using data from millions of negotiations on eBay. We find that for both buyers and sellers, the longer the bargaining party delays, the less likely the opponent is to continue the negotiation by countering, and the fewer rounds the negotiation takes to complete. The effects of delay are robust; they exist even under short amounts of delay (under six hours) and for negotiations for low-priced goods. We find that these effects are consistent with models of strategic delay, in which delay acts as a signal of bargaining power.
How Awe in Marketing Communications Decreases Consumer Preferences for Limited Edition Products
Aysu Senyuz, Jonathan Hasford & Ze Wang
Journal of Marketing Research, forthcoming
Abstract:
Awe is commonly employed in marketing communications given its powerful ability to inspire consumers. Despite the prevalent use of awe in advertising limited edition (LE) products, research has yet to examine when and how awe can benefit or hurt these promotional efforts. Findings across nine studies demonstrate that awe typically has a negative impact on consumer engagement and product preferences toward LE items. This effect results from the reduced desire for exclusivity that a consumer has when experiencing awe. These findings are generalized to several contexts, including a field study of persuasive communications and consumer choices in a metaverse environment. However, awe can enhance consumer preferences toward LE products when promotional messages are framed to reduce this incongruence. We provide insights for marketers on the conditions under which incorporating awe in LE product campaigns might prove beneficial or counterproductive.