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Modeling of Marketing Channels: Implications for Both Fields and a Call for Future Research

Marketing Letters, Forthcoming

25 Pages Posted: 16 Jun 2009 Last revised: 4 Jan 2012

Robert J. Meyer

University of Pennsylvania - Marketing Department

Joachim Vosgerau

Tilburg School of Economics and Management

Vishal P. Singh

GSIA, Carnegie Mellon University

Joel Urbany

University of Notre Dame - Department of Marketing

Gal Zauberman

University of Pennsylvania - Marketing Department

Michael I. Norton

Harvard Business School - Marketing Unit

Tony Haitao Cui

University of Minnesota - Twin Cities

Brian T. Ratchford

University of Texas at Dallas

Alessandro Acquisti

Carnegie Mellon University - Heinz College

David R. Bell

University of Pennsylvania - Marketing Department

Barbara E. Kahn

University of Pennsylvania - Marketing Department; University of Miami

Date Written: June 1, 2009

Abstract

Game-theoretic models of marketing channels typically rely on simplifying assumptions that, from a behavioral perspective, often appear naïve. However, behavioral researchers have produced such an abundance of behavioral regularities that they are impossible to incorporate into game-theoretic models. We believe that a focus on three core findings would benefit both fields; these are: First, beliefs that are held by the various players regarding profit consequences of different actions are incomplete and often biased; second, players’ preferences and optimization objectives are not commonly known; and third, players have insufficient cognitive abilities to achieve optimization objectives. Embracing these three findings shifts the focus from rational decision making to how decision makers learn to improve their decision making skills. Concluding, we believe that greater convergence of game-theoretic modeling and behavioral research in marketing channels would lead to new insights for both fields.

Keywords: marketing channels, game theory, behavioral decision research

JEL Classification: D03, D40, D70, D80, D90, L10, L20, M10, M30, M31

Suggested Citation

Meyer, Robert J. and Vosgerau, Joachim and Singh, Vishal P. and Urbany, Joel and Zauberman, Gal and Norton, Michael I. and Cui, Tony Haitao and Ratchford, Brian T. and Acquisti, Alessandro and Bell, David R. and Kahn, Barbara E., Modeling of Marketing Channels: Implications for Both Fields and a Call for Future Research (June 1, 2009). Marketing Letters, Forthcoming. Available at SSRN: https://ssrn.com/abstract=1419722

Robert J. Meyer

University of Pennsylvania - Marketing Department ( email )

700 Jon M. Huntsman Hall
3730 Walnut Street
Philadelphia, PA 19104-6340
United States

Joachim Vosgerau

Tilburg School of Economics and Management ( email )

Tilburg
Netherlands

Vishal P. Singh

GSIA, Carnegie Mellon University ( email )

5000 Forbes Avenue
Pittsburgh, PA 15213-3890
United States

Joel Urbany

University of Notre Dame - Department of Marketing ( email )

Notre Dame, IN 46556-0399
United States

Gal Zauberman

University of Pennsylvania - Marketing Department ( email )

700 Jon M. Huntsman Hall
3730 Walnut Street
Philadelphia, PA 19104-6340
United States

Michael I. Norton

Harvard Business School - Marketing Unit ( email )

Soldiers Field
Boston, MA 02163
United States

Tony Haitao Cui (Contact Author)

University of Minnesota - Twin Cities ( email )

321 19th Ave S
Suite 3-150
Minneapolis, MN 55455
United States

Brian T. Ratchford

University of Texas at Dallas ( email )

2601 North Floyd Road
Richardson, TX 75083
United States

Alessandro Acquisti

Carnegie Mellon University - Heinz College ( email )

Pittsburgh, PA 15213-3890
United States
412-268-9853 (Phone)
412-268-5339 (Fax)

David R. Bell

University of Pennsylvania - Marketing Department ( email )

700 Jon M. Huntsman Hall
3730 Walnut Street
Philadelphia, PA 19104-6340
United States

Barbara E. Kahn

University of Pennsylvania - Marketing Department ( email )

700 Jon M. Huntsman Hall
3730 Walnut Street
Philadelphia, PA 19104-6340
United States

University of Miami ( email )

United States

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