Advertising Disclosures: Measuring Labeling Alternatives in Internet Search Engines

Edelman, Benjamin, and Duncan S. Gilchrist. “Advertising Disclosures: Measuring Labeling Alternatives in Internet Search Engines.” Information Economics and Policy 24, no. 1 (March 2012): 75-89.

In an online experiment, we measure users’ interactions with search engines, both in standard configurations and in modified versions with clearer labels identifying search engine advertisements. In particular, for a random subset of users, we change “Sponsored links” or “Ads” labels to instead read “Paid Advertisements.” Relative to users receiving the “Sponsored link” or “Ad” labels, users receiving the “Paid Advertisement” label click 25% and 27% fewer advertisements, respectively. Users seeing “Paid Advertisement” labels also correctly report that they click fewer advertisements, controlling for the number of advertisements they actually click. Results are most pronounced for commercial searches and for vulnerable users with low education and little online experience.

Using Internet Data for Economic Research

Edelman, Benjamin. “Using Internet Data for Economic Research.” Journal of Economic Perspectives 26, no. 2 (Spring 2012): 189-206.

The data used by economists can be broadly divided into two categories. First, structured datasets arise when a government agency, trade association, or company can justify the expense of assembling records. The Internet has transformed how economists interact with these datasets by lowering the cost of storing, updating, distributing, finding, and retrieving this information. Second, some economic researchers affirmatively collect data of interest. Historically, assembling a dataset might involve delving through annual reports or archives that had not previously been organized into a format ready for research: in some cases, surveying stores, factories, consumers, or workers, or in other cases, carrying out an experiment. For researcher-collected data, the Internet opens exceptional possibilities both by increasing the amount of information available for researchers to gather and by lowering researchers’ costs of collecting information. In this paper, I explore the Internet’s new datasets, present methods for harnessing their wealth, and survey a sampling of the research questions these data help to answer.

Antitrust Scrutiny of Google

Edelman, Benjamin. “Antitrust Scrutiny of Google.” Journal of Law 2, no. 2 (2012): 445-464.

I evaluate antitrust claims against Google and propose possible remedies. While Google’s specific tactics are often novel, I show connections to practices deemed unlawful over a period of decades, and I identify remedies well grounded in antitrust precedent.

Airbnb (teaching materials) with Michael Luca

Edelman, Benjamin, and Michael Luca. “Airbnb (A).” Harvard Business School Case 912-019, December 2011. (Revised March 2012.) (educator access at HBP. request a courtesy copy.)

After widely-publicized complaints of destructive guests and unreliable hosts, online apartment rental site Airbnb explores mechanisms to facilitate trust between guests and hosts. Flexible online reputation systems can collect and share information with ease, but Airbnb must decide which information guests and hosts should have to provide and how much flexibility each should have in selecting who to do business with. A full-featured system could provide all the information users have been requesting, but would it be too complicated for routine use?

Supplements:

Airbnb (B) – Supplement (HBP 912019)

Teaching Material:

Airbnb (A) and (B) – Teaching Note (HBP 912021)

Attack of the Clones: Birchbox Defends Against Copycat Competitors (teaching materials) with Peter Coles

Coles, Peter A., and Benjamin Edelman. “Attack of the Clones: Birchbox Defends Against Copycat Competitors.” Harvard Business School Case 912-010, November 2011. (Revised October 2014.) ( educator access at HBP. request a courtesy copy.)

Birchbox offers trial-sized beauty products delivered monthly by mail—attracting rave reviews. Seeing the success of this model, numerous “copycat” clones seek to offer the same service. Many of these copycats focus on non-U.S. countries, but others are challenging Birchbox on its home territory. Can Birchbox defend its position? How?

Apple in-app purchase litigation

I served as cocounsel in class action litigation challenging Apple charging users for purchases made by kids, refusing refunds to such users, and allowing purchases (and charging users’ credit cards) without users reentering their passwords to authorize the purchases.  In response, Apple agreed to grant refunds to customers who so requested.

In Re In-App Purchase Litigation, Case No. 5:11-CV-01758-EJD (N.D. Cal.)

Case docket including consolidated class action complaint

The Online Economy: Strategy and Entrepreneurship — Course Architecture Note (teaching materials) with Peter Coles

Coles, Peter, and Benjamin Edelman. “The Online Economy: Strategy and Entrepreneurship — Course Architecture Note.” Harvard Business School Course Overview Note 911-069, April 2011. (Revised February 2015.) (educator access at HBP. request a courtesy copy.)

This note provides an overview of the Harvard Business School course “The Online Economy: Strategy and Entrepreneurship.” It covers the framework for the course, key principles within each course module, and a synopsis of each case, along with the lessons the case is meant to convey.

Online Marketing at Big Skinny (teaching materials) with Scott Kominers

Edelman, Benjamin, and Scott Duke Kominers. “Online Marketing at Big Skinny.” Harvard Business School Case 911-033, February 2011. (Revised February 2012.) (educator access at HBP. request a courtesy copy.)

Describes a wallet maker’s application of seven Internet marketing technologies: display ads, algorithmic search, sponsored search, social media, interactive content, online distributors, and A/B testing. Provides concise introductions to the key features of each technology, and asks which forms of online marketing the company should prioritize in the future. Discusses similarities and differences between online and off-line marketing, as well as issues of marketing campaign evaluation.

Supplement:

Online Marketing at Big Skinny — slide supplement – PowerPoint Supplement (HBP 912006)

Teaching Materials:

Online Marketing at Big Skinny – Teaching Note (HBP 911034)