Rotman School of Management

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Avery Haviv

Avery Haviv

    Avery Haviv

    PhD Student
    5th year, Marketing

    Degrees: Ph.D, Marketing, Rotman School of Management , August 2014 (expected)
    M.Sc., Statistics, University of Toronto, April 2009
    B.Math., Statistics, University of Waterloo, April 2007
    Email: Send an email to Avery Haviv

    Dissertation

    Title: Does Purchase Without Search Explain Counter-Cyclic Pricing? Essays on dynamic models of consumer and firm behavior.

    Basic economic theory tells us to expect that an increase in demand should lead to an increase in price. However, previous studies have found the opposite trend in the prices of seasonal goods, such as canned soup. I propose an explanation of this phenomenon: consumers are more likely to purchase without search in low demand periods, reducing the gains of temporary price reductions, and decreasing estimated price sensitivity. Purchase without search is consistent with consumers using shopping lists to make their purchase decisions before observing prices. I test this explanation using a novel dynamic, structural inventory model where consumers make decisions on whether to search, which reveals price promotions, and which products to purchase given their search decision.

    Estimating this model using previous methods is a computational challenge because of the expansion of the state space required to model seasonal preferences. To overcome this challenge, I develop a cyclic-successive approximation algorithm, which removes the computational burden of adding cyclic variables to the state space of a dynamic model. I find that consumers purchase without search 61% of the time in winter, and 82% of the time in summer. This causes price elasticities that are twice as large in winter as they are in the summer. I find that the dominant cause of seasonal search is seasonal consumption preferences, rather than seasonal price variation.

    Dissertation Committee

    Avi  GoldfarbCommittee Chair Professor of Marketing
    Andrew  ChingCommittee Member Associate Professor of Marketing Ph.D. Coordinator for Marketing
    Ron  BorkovskyCommittee Member Assistant Professor of Marketing

    Recent Presentations

    • Does Purchase Without Search Explain Counter-Cyclic Pricing?; Doctoral Workshop in Applied Econometrics; 2013
    • Does Purchase Without Search Explain Counter-Cyclic Pricing?; Empirical & Theoretical Symposium; 2013

    Honors and Awards

    2012, 2013  CCMF FellowshipRotman School of Management, University of Toronto
    2009-present  Doctoral ScholarshipRotman School of Management, University of Toronto
    2013  AMA-Sheth Doctoral Consortium FellowUniversity of Michigan
    2011  Initiative for Computational Economics (ICE) Sponsored ParticipantUniversity of Chicago
    2010  Workshop on Quantitative Marketing and Structural Econometrics Sponsored Participant,Columbia-Duke-UCLA
    2009  Teaching Assistant Award for Excellence, Department of StatisticsUniversity of Toronto

    Work Experience

    2007-2008   Associate ConsultantHarris Interactive

    Projects

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