2015 Informs Annual Meeting

MA39

INFORMS Philadelphia – 2015

MA39 39-Room 100, CC Topics in Mental Accounting, Newsvendor and Pricing Cluster: Operations/Marketing Interface Invited Session Chair: Jun Ru, Assistant Professor, University at Buffalo, 326D Jacobs, Buffalo, NY, 14260, United States of America, junru@buffalo.edu 1 - Dynamic Pricing with a Fare-lock Option Ming Chen, Assistant Professor, California State University Long Beach, 1250 Bellflower Blvd, Long Beach, CA, 90840, United States of America, ming.chen@csulb.edu, Zhi-Long Chen We study a dynamic pricing problem frequently seen in the airlines industry where customers are offered an option to lock a fare at a small fee for a certain period of time. The free 24 hour cancellation enforced by DOT can be viewed as a special case of this problem. This provides a valuable option for those undecided travelers when finalizing their travel plans. We build a dynamic pricing model to investigate the implications of this type of practice on both the airlines and the passengers. 2 - Mental Accounting and Payment Schemes in Manufacturer’s Returns Policies Charles Wang, Associate Professor, University at Buffalo, Buffalo, NY, United States of America, cxwang@buffalo.edu, Jun Ru Returns policies have been used between the manufacturer and retailer in supply chains with uncertain demand. This research extends our understanding of returns policies by adopting the concept of mental accounting to describe the manufacturer’s behavioral decisions under returns policies. We also investigate two alternative payment schemes that help mitigate the manufacturer’s mental accounting effect in returns policies and improve channel performance. 3 - Price Discount and Capacity Planning under Demand Postponement with Opaque Selling Zhengping Wu, Associate Professor, Syracuse University, 721 University Ave, Syracuse, NY, 13244, United States of America, zwu12@syr.edu, Jianghua Wu We consider the opaque selling strategy of a firm that uses a price discount to induce demand postponement. Under demand postponement, the firm offers a price discount to advance customers in exchange for the option to fulfill their orders after the spot demand has been satisfied. In effect, the price discount enables the firm to create a capacity buffer for the spot demand. We characterize the firm’s optimal capacity and price discount decisions. 4 - A Two Product Newsvendor Problem with Partial Demand Substitution Jun Zhang, Associate Professor, Fudan University, 670 Guoshun Rd, Faculty Building 520, Shanghai, China jxz063000@outlook.com, Jun Ru, Ruixia Shi We show that a two-product newsvendor problem with partial demand substitution is equivalent to the classical newsvendor problem with the same economic parameters but an adjusted demand. By comparing the adjusted demand and the primary demand stochastically, we examine the impacts of substitution on the expected profit and optimal order quantities. Our analysis does not rely on assumptions on particular demand distributions or correlation structures. MA40 40- Room 101, CC Investigating Mobility Dynamics within Markets and Organizations Sponsor: Organization Science Sponsored Session Chair: Y. Sekou Bermiss, University of Texas, Austin, TX, United States of America, ysb@austin.utexas.edu 1 - Racial Disparity in Promotion Rates of NFL Coaches Chris Rider, Georgetown University, Washington, DC, chris.rider@georgetown.edu, Jim Wade, Anand Swaminathan, Andreas Schwab We examine differences in the rates at which white and black coaches are promoted within the NFL between 1985 and 2012. We demonstrate continuing race-based sorting into positions with limited upward mobility chances (e.g., RB coach) and lower mobility rates conditional on attaining any position (e.g., LB coach). We discuss how high-level interventions designed to increase representation at the highest levels are likely to be ineffective absent accompanying lower level interventions.

2 - Should I Stay or Should I Go: Movement of Artists and Producers between Labels When New Music Categories Emerge

Eugene Paik, University of Arizona, Tucson, AZ, paikth@email.arizona.edu, Joseph P. Broschak

The 1950’s began the rise of new genres of recorded American music. We investigate how, in the wake of new genres emerging, music label identity changes (e.g., changes in the portfolio of music genres that labels choose to produce) affected the mobility of music artists and producers between music labels. 3 - Employee Mobility and Firm Performance: An Integrative Theoretical Framework and Research Agenda John Mawdsley, University of Illinois at Urbana Champaign, Urbana, IL, mawdsle1@illinois.edu, Deepak Somaya We review of research on employee mobility and its organizational impacts, and casting it within a novel integrative theoretical framework. We highlight the various organizational impacts of employee mobility, describe how contextual factors moderate the transfer of human and relational capital through mobile individuals, and how constraining factors that impede employee mobility may also be used for effectuating the same organizational impacts as mobility events. 4 - Individual Status Attainment and Entrepreneurial Entry: The Mobility of Award Winning Creative Directors in the Advertising Industry Michelle Rogan, INSEAD, Boulevard de Constance, Fontainebleau Cedex 77305, France Michelle.Rogan@insead.edu, Andrew von Nordenflycht This study is an investigation into the type of firms to which “stars” are likely to move. In particular, we examine the effect of stardom on the likelihood of moving to a higher status firm vs. starting or joining an entrepreneurial firm, in other words choosing status or autonomy. We test our arguments on a sample of award winning creative directors in the advertising industry. We find that industry awards provide a means of resource redistribution and new organizational foundings. 5 - Ideological Misfits: Political Affiliation and Employee Departure in the Private Equity Industry Y. Sekou Bermiss, University of Texas, Austin, TX, United States of America, ysb@austin.utexas.edu, Rory McDonald Building on social psychological theories of organizational fit we develop theory to explain how ideological mismatch between an individual and their immediate peers impacts their likelihood of firm departure. Tracking the movement of over 40,000 investment professionals within the U.S. private equity industry over ten years, we investigate how impact of ideological misfit that arises when individuals hold political ideologies that depart substantially from the dominant ideology of the firm. MA41 41-Room 102A, CC Joint Session MSOM-Health/HAS: Data-Driven Modeling in Healthcare II Sponsor: Manufacturing & Service Oper Mgmt/Healthcare Operations Sponsored Session Chair: Yichuan Ding, UBC, 2053 Main Mall, Sauder School of Business, Vancouver, BC, V6T1Z2, Canada, daniel.ding@sauder.ubc.ca Co-Chair: Nan Liu, Columbia University, 722 W. 168th. St., New York, United States of America, nl2320@columbia.edu 1 - What Drives the Geographical Differences in Deceased Donor Organ Procurement in the United States? Mazhar Arikan, Assistant Professor, University of Kansas, 1300 Sunnyside Ave., Lawrence, KS, 66045, United States of America, mazhar@ku.edu, Baris Ata, Rodney Parker, John J Friedewald The deceased-donor kidney allocation system suffers from severe shortages of available organs while there is significant variation in the procurement rates across different geographies in the US. The empirical analysis reveals that the intent of procurement increases with organ quality, the median waiting time for a transplant, and the competition among transplant centers. A counterfactual study shows that broader sharing of lower quality organs leads to an increase in the procurement rates.

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