This paper develops a framework to measure "tipping" - the increase in a firm's market share dominance caused by indirect network effects. Our measure compares the expected concentration in a market to the hypothetical expected concentration that would arise in the absence of indirect network effects. In practice, this measure requires a model that can predict the counter-factual market concentration under different parameter values capturing the strength of indirect network effects. We build such a model for the case of dynamic standards competition in a market characterized by the classic hardware/software paradigm. To demonstrate its applicability, we calibrate it using demand estimates and other data from the 32/64-bit generation of video game consoles, a canonical example of standards competition with indirect network effects. In our example, we find that indirect network effects can lead to a strong, economically significant increase in market concentration. We also find important roles for beliefs on both the demand side, as consumer's tend to pick the product they expect to win the standards war, and on the supply side, as firms engage in penetration pricing to invest in growing their networks.

While diversity, equity, and inclusion issues are a focus of brand activism and many firms' corporate social responsibility initiatives, the challenge is that these topics either 1) impact a relatively small group of individuals (i.e., limited in scope) or 2) are emotionally charged or polarizing in nature. This makes it difficult for firms to determine if and when it is appropriate to respond to DEI events on social media. We use surveys and Twitter data to provide clarity on the effectiveness of DEI-related tweets as a social media strategy. By comparing DEI tweets with COVID-19 and political tweets we find that audiences feel that DEI and COVID-19 topics are appropriate to talk about, but that DEI issues have a significantly lower scope relative to other topics. Still, engagement is relatively high when a brand explicitly responds to a major social event, suggesting that the downside risks of discussing DEI events in social media are limited. In addition, DEI tweets appear most effective when used sporadically as they are more sensitive to topic saturation. Although this research is relatively exploratory in nature but, our findings provide useful guidelines and insights DEI brand activism.

In the context of introducing new products around the world, it is important to understand the relative attractiveness of various countries in terms of maximum penetration potential and diffusion speed. In this paper, we examine these market characteristics for a new category of prescription drugs in both developing and developed countries. Using data from fifteen countries, and a logistic specification in the Hierarchical Bayesian framework, we report the differences in diffusion speed and maximum penetration potential between developing and developed nations. Our methodology accounts for the limited number of data observations as well as serial correlation and endogeneity problems that arise in the analysis. The principal findings include: (i) Compared to developed countries, developing nations tend to have lower diffusion speeds and maximum penetration levels; (ii) Laggard developed countries have higher speeds. However, laggard developing countries do not have higher diffusion speeds; (iii) Per capita expenditures on healthcare have a positive effect on diffusion speed (particularly for developed countries), while higher prices tend to decrease diffusion speed. The paper concludes by identifying useful avenues for additional research.

Public health regulators in the United States are currently advocating for a ban on menthol-flavored cigarettes because they are believed to be more dangerous than traditional non-menthol cigarettes. However, these bans will have limited benefits if consumers are able to circumvent them. We examine this issue by evaluating the effects of a statewide menthol ban that was instituted by Massachusetts in 2020. An examination of store-level retail sales data from Massachusetts indicates that some demand shifted from menthols to non-menthols after the ban was instituted, thereby supporting the goals of the ban. However, broadening our analysis to neighboring states shows a sharp increase in menthol sales in areas just outside the Massachusetts border, thereby suggesting that many Massachusetts residents were able to get around the ban by engaging in cross-state shopping for menthol cigarettes. This cross-state shopping is damaging because it reduces the tax revenue for Massachusetts while also not yielding any positive public health benefits among its population. To provide policymakers with guidance regarding the benefits of alternative policies, we develop and estimate a model that accounts for heterogeneity in (i) prices across states; (ii) distances from state borders; and (iii) menthol shares across Massachusetts. We show that a statewide menthol tax might be preferable over either a statewide menthol ban or a national ban because it yields sizable reductions in smoking activity while also generating up to 14% in additional tax revenue.

Marketing Science is in a great competitive position with a strong editorial board and infrastructure support. This editorial summarizes the state of the journal as perceived by its stakeholders. They believe that the journal should strive to remain a premier international journal and embrace diverse topics, methods, and foci. It should continue to draw upon allied fields while being open to the various methods and philosophies as recognized in those fields. It should strive to avoid silos and embrace applications and relevance while not sacrificing rigor. The path may not be easy, but we can move forward successfully. We highlight potential threats to success and recommend how the journal might overcome those threats.