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Targeted Promotions on an E-Book Platform: Crowding Out, Heterogeneity ...

https://www.fox.temple.edu/sites/fox/files/targeting-crowdout-jmr19.pdf

Abstract Targeted promotions based on individual purchase history can increase sales. However, the opportunity costs of targeting to optimize promoted product sales are poorly understood. A series of randomized field experiments with a large e-book platform shows that although targeted promotions increase promoted product sales and purchases of similar products, they can crowd out purchases of ...