Seminario CEA-MIPP - Miercoles 01/10/2025, 12:30 HRS - Sala de Consejo, piso 4, Beauchef 851 - "Planning and Performance: Experimental Evidence from Small Firms in E-Commerce" - Juan Pedro Ronconi (Universidad de Los Andes)

Tema: «Planning and Performance: Experimental Evidence from Small Firms in E-Commerce«

Presenta: Juan Pedro Ronconi (Universidad de Los Andes)

This paper provides experimental evidence that behavioral frictions can affect operations planning in small firms, thereby reducing firm performance. I analyze a field experiment involving 14,500 e-commerce retailers in Argentina and Brazil conducted during the two weeks before Black Friday, a major sales event. The intervention randomized messages reminding managers that Black Friday was approaching and encouraging them to plan their pricing and advertising strategies. Treated firms shifted from generic to discount-related advertising and increased inventories before the event, but did not vary their pricing relative to the control group. As a result, sales increased by 5.2% for 60 days following the intervention. Machine learning methods reveal larger returns for relatively bigger firms with a stronger social media presence, suggesting strategic complementarities between firm size and light-touch interventions. These findings highlight how psychological constraints may be a meaningful barrier to the performance of small firms.

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