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Summary
Is there bias in terms of remediating service complaints? Do customers in wealthier, more educated areas get their complaints resolved easier or more quickly? The researchers behind this Marketing Science Institute (MSI) working paper analyzed data from Boston’s 311 information system to find out. The paper finds that service complaints from highly educated census blocks are more likely to be resolved more quickly than those in less educated neighborhoods. However, mobile phone applications can reduce this gap by giving customers a standardized communication tool for filing complaints. Researchers used an instrumental variable approach to address endogeneity in mobile app use.
