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Forward Looking Behavior in Mobile Data Consumption and Targeted Promotion Design

A Dynamic Structural Model

The ability to identify individual forward-looking consumers and then design targeted promotions especially for these consumers can open up enormous revenue opportunities for mobile carriers as well as many other industries.This study led by Georgia Tech Professor Dr. Lizhen Xu and Co-Authors Dr. Jason A. Duan, University of Texas, Dr. Yu “Jeffrey” Hu, Georgia Tech, Dr. Yuan Cheng, Tsinghua University, and Dr. Yan Zhu, Tsinghua University, looks at identifying those forward-looking consumers.

In addition, the study’s counterfactual simulations show how to design profitable promotion strategies targeting forward-looking users in contrast to unprofitable blanket promotions applied to all consumers.

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