Invited Paper—Even the Rich Can Make Themselves Poor: A Critical Examination of IV Methods in Marketing Applications

Marketing is a field that is rich in data. Our data is of high quality, often at a highly disaggregate level, and there is considerable variation in the key variables for which estimates of effects on outcomes such as sales and profits are desired. The recognition that, in some general sense, marketing variables are set by firms on the basis of information not always observable by the researcher has led to concerns regarding endogeneity and...