Abstract

http://ssrn.com/abstract=2358110
 


 



Information and Incentives in Online Affiliate Marketing


Benjamin G. Edelman


Harvard University - HBS Negotiations, Organizations and Markets Unit

Wesley Brandi


ipensatori.com

March 25, 2014

Harvard Business School NOM Unit Working Paper No. 14-041

Abstract:     
We examine online affiliate marketing programs in which merchants oversee thousands of affiliates they have never met. Some merchants hire outside specialists to set and enforce policies for affiliates, while other merchants ask their ordinary marketing staff to perform these functions. For clear violations of applicable rules, we find that outside specialists are most effective at excluding the responsible affiliates, which we interpret as a benefit of specialization. However, in-house staff are more successful at identifying and excluding affiliates whose practices are viewed as "borderline" (albeit still contrary to merchants' interests), foregoing the efficiencies of specialization in favor of the better incentives of a company's staff. We consider the implications for marketing of online affiliate programs and for online marketing more generally.

Number of Pages in PDF File: 33

working papers series


Download This Paper

Date posted: November 23, 2013 ; Last revised: March 27, 2014

Suggested Citation

Edelman, Benjamin G. and Brandi, Wesley, Information and Incentives in Online Affiliate Marketing (March 25, 2014). Harvard Business School NOM Unit Working Paper No. 14-041. Available at SSRN: http://ssrn.com/abstract=2358110 or http://dx.doi.org/10.2139/ssrn.2358110

Contact Information

Benjamin G. Edelman (Contact Author)
Harvard University - HBS Negotiations, Organizations and Markets Unit ( email )
Soldiers Field
Boston, MA 02163
United States
HOME PAGE: http://people.hbs.edu/bedelman
Wesley Brandi
ipensatori.com ( email )
Feedback to SSRN


Paper statistics
Abstract Views: 935
Downloads: 507
Download Rank: 28,610

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo1 in 0.890 seconds