behavior of a rational shopper and derives closed-form solutions for various questions. The analysis elegantly characterizes the optimal shopping policy of a rational shopper and examines the difference among different free-shipping schedules. It also empirically tests some hypotheses generated from the theoretical model using purchase data from various Web sites.
In summary, this research is highly recommended for scholars and practitioners who are at the interface of data mining and marketing.
Dr. Balaji Padmanabhan
Assistant Professor of Operations and Information Management
The Wharton School, University of Pennsylvania