This is an ongoing academic empirical research project that examines a digital product’s pricing questions in Quantitative Marketing and Industrial Organization. With greater access to detailed customer data, the possibility for personalized pricing and product configuration is often cited as having great potential for firms and creating some risks for fairness and consumer privacy. Despite the potential for this strategy in firms that distribute their goods digitally, in practice prices are often set to the same level for all consumers. The goal of this project is to evaluate the efficiency, profit, and welfare effects of practiced and potential pricing/consumer screening strategies in the context of digital video game distribution (Steam). We are looking for a DS team to help with data collection, formatting/storage, and analysis.
Through the project, students will learn 1) strong quantitative analysis skills, 2) gain experience with a research pipeline, and 3) practical skills with working on an applied project.