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STATISTICAL METHODS
IN E-COMMERCE
RESEARCH
WOLFGANG JANK AND GALIT SHMUELI
Department of Decision, Operations and Information Technologies, R.H. Smith
School of Business, University of Maryland, College Park, Maryland
This book is printed on acid-free paper.
Copyright # 2008 by John Wiley & Sons, Inc., Hoboken, New Jersey. All rights reserved.
Published simultaneously in Canada.
No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form
or by any means, electronic, mechanical, photocopying, recording, scanning or otherwise, except as
permitted under Sections 107 or 108 of the 1976 United States Copyright Act, without either the
prior written permission of the Publisher, or authorization through payment of the appropriate per-
copy fee to the Copyright Clearance Center, 222 Rosewood Drive, Danvers, MA 01923, (978) 750-
8400, fax (978) 750-4744. Requests to the Publisher for permission should be addressed to the
Permissions Department, John Wiley & Sons, Inc., 605 Third Avenue, New York, NY 10158-0012,
(212) 850-6011, fax (201) 850-6008, E-Mail: PERMREQ@WILEY.COM.
Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts
in preparing this book, they make no representations or warranties with respect to the accuracy or
completeness of the contents of this book and specifically disclaim any implied warranties of
merchantability or fitness for a particular purpose. No warranty may be created or extended by sales
representatives or written sales materials. The advice and strategies contained herein may not be suitable
for your situation. You should consult with a professional where appropriate. Neither the publisher nor
author shall be liable for any loss of profit or any other commercial damages, including but not
limited to special, incidental, consequential, or other damages.
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Library of Congress Cataloging-in-Publication Data:
Jank, Wolfgang, 1970-
Statistical methods in ecommerce research/Wolfgang Jank, Galit Shmueli.
p. cm. -- (Statistics in practice)
Includes bibliographical references and index.
ISBN 978-0-470-12012-5 (cloth)
1.
Electronic commerce -- Statistical methods.
I.
Shmueli, Galit, 1971- II. Title.
HF5548.32.J368 2008
381
0
.142015195--dc22
2007050394
Printed in the United States of America
0987654321
CONTENTS
PREFACE
ix
ACKNOWLEDGMENTS
xiii
CONTRIBUTOR LIST
xv
SECTION I
OVERVIEW OF E-COMMERCE RESEARCH
CHALLENGES
1
1. Statistical Challenges in Internet Advertising
3
Deepak Agarwal
2. How Has E-Commerce Research Advanced
Understanding of the Offline World?
19
Chris Forman and Avi Goldfarb
3. The Economic Impact of User-Generated and Firm-Generated
Online Content: Directions for Advancing the Frontiers in
Electronic Commerce Research
35
Anindya Ghose
4. Is Privacy Protection for Data in an E-Commerce
World an Oxymoron?
59
Stephen E. Fienberg
v
vi
CONTENTS
5. Network Analysis of Wikipedia
81
Robert H. Warren, Edoardo M. Airoldi, and David L. Banks
SECTION II
E-COMMERCE APPLICATIONS
103
6. An Analysis of Price Dynamics, Bidder Networks, and
Market Structure in Online Art Auctions
105
Mayukh Dass and Srinivas K. Reddy
7. Modeling Web Usability Diagnostics on the Basis of
Usage Statistics
131
Avi Harel, Ron S. Kenett, and Fabrizio Ruggeri
8. Developing Rich Insights on Public Internet Firm Entry and
Exit Based on Survival Analysis and Data Visualization
173
Robert J. Kauffman and Bin Wang
9. Modeling Time-Varying Coefficients in Pooled Cross-Sectional
E-Commerce Data: An Introduction
203
Eric Overby and Benn Konsynski
10. Optimization of Search Engine Marketing Bidding
Strategies Using Statistical Techniques
225
Alon Matas and Yoni Schamroth
SECTION III
NEW METHODS FOR E-COMMERCE DATA
243
11. Clustering Data with Measurement Errors
245
Mahesh Kumar and Nitin R. Patel
12. Functional Data Analysis for Sparse Auction Data
269
Bitao Liu and Hans-Georg M ¨ ller
13. A Family of Growth Models for Representing the Price
Process in Online Auctions
291
Valerie Hyde, Galit Shmueli, and Wolfgang Jank
vii
CONTENTS
14. Models of Bidder Activity Consistent with Self-Similar
Bid Arrivals
325
Ralph P. Russo, Galit Shmueli, and Nariankadu D. Shyamalkumar
15. Dynamic Spatial Models for Online Markets
341
Wolfgang Jank and P.K. Kannan
16. Differential Equation Trees to Model Price Dynamics in
Online Auctions
363
Wolfgang Jank, Galit Shmueli, and Shanshan Wang
17. Quantile Modeling for Wallet Estimation
383
Claudia Perlich and Saharon Rosset
18. Applications of Randomized Response Methodology
in E-Commerce
401
Peter G.M. van der Heijden and Ulf B ¨ ckenholt
INDEX
417
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