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Behavioral research and empirical modeling of marketing channels: Implications for both fields and a call for future research

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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.

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Authors and Affiliations

  1. Wharton School of the University of Pennsylvania, Philadelphia, PA, USA

    Robert J. Meyer, Gal Zauberman & David R. Bell

  2. Tepper School of Business, Carnegie Mellon University, Pittsburgh, PA, USA

    Joachim Vosgerau

  3. Stern School of Business, New York University, New York, NY, USA

    Vishal Singh

  4. Mendoza College of Business, University of Notre Dame, Notre Dame, IN, USA

    Joel E. Urbany

  5. Harvard Business School, Harvard University, Boston, MA, USA

    Michael I. Norton

  6. Carlson School of Management, University of Minnesota, Minneapolis, MN, USA

    Tony H. Cui

  7. School of Management, University of Texas at Dallas, Richardson, TX, USA

    Brian T. Ratchford

  8. Heinz School of Public Policy, Carnegie Mellon University, Pittsburgh, PA, USA

    Alessandro Acquisti

  9. School of Business Administration, University of Miami, Miami, FL, USA

    Barbara E. Kahn

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  1. Robert J. Meyer
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  2. Joachim Vosgerau
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  3. Vishal Singh
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  4. Joel E. Urbany
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  5. Gal Zauberman
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  6. Michael I. Norton
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  7. Tony H. Cui
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  8. Brian T. Ratchford
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  9. Alessandro Acquisti
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  10. David R. Bell
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  11. Barbara E. Kahn
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Correspondence to Joachim Vosgerau.

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Meyer, R.J., Vosgerau, J., Singh, V. et al. Behavioral research and empirical modeling of marketing channels: Implications for both fields and a call for future research. Mark Lett 21, 301–315 (2010). https://doi.org/10.1007/s11002-010-9109-y

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