eBusiness Research Lunch Seminars
NE20-336 (3 Cambridge Center)
Wednesday, December 12th, 11:45-1:00 pm
Lunch Provided
Professor Ely Dahan
Securities Trading of Concepts (STOC)
(Co-PI's on Research: Andrew Lo and Tomaso Poggio)

Abstract

Market prices are well known to efficiently collect and aggregate diverse information regarding the value of commodities and assets. The role of markets has been particularly suitable to pricing financial securities. This talk provides an alternative application of the pricing mechanism to marketing research using pseudo-securities markets to measure preferences over new product concepts and attributes. Surveys, focus groups, concept tests and conjoint studies are methods traditionally used to measure individual and aggregate preferences. Unfortunately, these methods can be biased, costly and time-consuming to conduct. The present research is motivated by the desire to efficiently measure preferences and accurately predict new product success, based on the efficiency and incentive-compatibility of security trading markets. The talk describes a novel market research method, Securities Trading of Concepts (STOC), provides insight into why the STOC method should work, and compares the results of several trading experiments (crossover vehicles, laptop bags, bicycle pumps) against other methodologies such as concept testing and conjoint analysis.

For access to presentation materials, please visit the Sponsors Only section.

Students may request materials from Robynne DeCaprio at <decaprio@mit.edu>

 

Calendar for Fall Lunch seminars