2015 Informs Annual Meeting

WB46

INFORMS Philadelphia – 2015

2 - Eliciting Product Information via Public Rating and Local Experience Sharing Shihong Xiao, HKUST, Clear Water Bay, Hong Kong, Hong Kong - PRC, sxiaoab@connect.ust.hk, Ying-ju Chen Customers resort to public ratings and friends’ experience sharing in purchasing goods.This paper investigates how these two sources of information impact customers’ purchase decisions and how they are manipulated by firms’ selective targeting in free trials distribution.We show that more information may induce customer to make worse decision.A firm with higher quality good tends to offer limited free trials to boost product rating,which may be accompanied by lower price. 3 - Consumer Choice Models with Endogenous Network Effects Zizhuo Wang, Assistant Professor, University of Minnesota, 111 Church Street S.E., Minneapolis, MN, United States of America, zwang@umn.edu, Ruxian Wang We propose and analyze a new choice model that takes into account network effects. We characterize the choice probabilities under such model and conduct comparative statics studies. Then we investigate the assortment optimization problem under such choice model. We show that a new class of assortments, called quasi-revenue-ordered assortments, is optimal under mild conditions and performs well in practice. We also conduct an empirical study on a mobile game dataset to validate our results. Chair: Huseyin Topaloglu, Professor, Cornell University, 223 Rhodes Hall, Ithaca, NY, 14853, United States of America, ht88@cornell.edu 1 - Assortment Optimization with Consideration Sets Jacob Feldman, Cornell University, 136 Hoy Road, Ithaca, NY, United States of America, jbf232@cornell.edu, Huseyin Topaloglu We consider a series of assortment optimization problems when customers only consider purchasing a subset of the offered products. This subset of products is referred to as a customer’s consideration set. In very simple instances, we show that this problem is NP Hard and provide an FPTAS when the offered assortment is space or cardinality constrained. 2 - Quality Consistent Pricing under the Nested Logit Model James Davis, Cornell University, 290 Rhodes Hall, Ithaca, United States of America, jamesmariodavis@gmail.com, Huseyin Topaloglu, David Williamson We consider pricing problems where customers choose among products according to the nested logit model and there is a quality consistency constraint. The quality consistency constraint ensures that the posted prices of products reflect the quality of the products. We consider variations of this problem and provide polynomial time algorithms. 3 - Capacitated Assortment Optimization under Non-parametric Choice Models Alice Paul, Cornell University, 136 Hoy Road, Ithaca, NY, 14850, United States of America, ajp336@cornell.edu, Jacob Feldman, James Davis We consider the capacitated assortment optimization problem. Given a collection of items with associated revenues, we must choose a subset of items of size at most k to display to customers to maximize expected revenue. In this talk, we consider restricted classes of the non-parametric choice model, and present a polynomial time algorithm for the associated assortment problem. WB44 44-Room 103B, CC Assortment Optimization Sponsor: Revenue Management and Pricing Sponsored Session

In each production period, the firm observes the market price, the inventory level, and the remaining allowance. It then decides on how much to produce and how much to sell. We characterize the structure of the optimal policy and study the impact of various parameters, including allowance amount, production capacity and leadtime. 2 - Socio-emotional Wealth: An Extensive Construct for CSR of Family Firms Wei-jun Hsueh, PhD Candidate, Bocconi University, Via Sarfatti 25, PhD School, Milan, MI, 20136, Italy, jwjHsueh@gmail.com Socio-emotional wealth (SEW) is a dominant decision logic premised on the non- economic goals of the controlling family in family firms. It can enhance the stewardship practices of a family firm beyond economic goals. This paper expands the existing SEW construct by adding family leadership and culture to examine the stewardship practices of family firms in terms of corporate social responsibility performance. It examines the intricate relationship among various SEW dimensions of family firms. 3 - Analysis of National Transportation Sustainability Changes in the U.S. and Selected European Countries Hamed Ahangari, PhD Candidate, University of Connecticut, 142 Vernon Ave, No 83, Vernon, CT, 06066, United States of America, hamed.ahangari@uconn.edu, Norman Garrick, Carol Atkinson-Palombo In this study we measure national surface transportation index in all three environmental, social, and economic dimensions. Based on these measurement we develop a composite index called National Sustainable Transportation Index (NSTI). We run these models for different time period 2005-2012 in the US and 27 selected European countries. Finally, we offer a framework to answer why some countries are improving in terms of sustainability and the others are getting worse over the course of time. 4 - Sustainability Measures in Strategic Supply Chain Management Decisions Ismail Civelek, Assistant Professor, Western Kentucky University, 1906 College Heights Blvd., #11058, Bowling Green, KY, 42101, United States of America, ismail.civelek@wku.edu We investigate how companies can implement sustainability measures strategically. We approach sustainable supply chains from the value chain perspective by identifying opportunities for sustainable actions and policies at different phases in the product life cycle, especially in inventory management. We discuss sustainability measures in inventory management and provide both short and long term managerial implications for a decision maker to promote sustainability in inventory management. 5 - On Sustainability and Corporate Social Responsibility Reporting Andriy Shapoval, Georgia Institute of Technology, 765 Ferst Dr. NW, Atlanta, GA, 30332, United States of America, ashapoval3@gatech.edu, Henry Aigbedo, Marina Mattera, Ivan Oliver Hilliard Sustainability and corporate social responsibility is becoming an increasingly important topic around the world. Many businesses are uncertain about the value of reporting initiatives in this area. We provide a regression model and analyze factors leading to the decisions about voluntary reporting (and at which level, if any) in some industrial sectors. WB46 46-Room 104A, CC Role of Information in Service Systems Sponsor: Manufacturing & Service Oper Mgmt/Service Operations Sponsored Session Chair: Senthil Veeraraghavan, Associate Professor, The Wharton School, 3730 Walnut St, Philadelphia, PA, 19104, United States of America, senthilv@wharton.upenn.edu 1 - Contracting in Medical Equipment Maintenance Services: An Empirical Investigation Tian Chan, INSEAD, TianHeong.CHAN@insead.edu, Omar Besbes, Francis De Vericourt Fixed-fee and pay-per-service contracts are two forms of maintenance service plans that structure payment between operators and service providers. Using data from 712 medical scanners, we empirically compare their effects on service outcomes. We exploit a warranty period to isolate incentive effects from adverse selection. We find that a pay-per-service contract leads to relatively higher reliability at a lower cost. Hence, it produces greater value to the service chain.

WB45 45-Room 103C, CC

Sustainability I Contributed Session Chair: Andriy Shapoval, Georgia Institute of Technology, 765 Ferst Dr. NW, Atlanta, GA, 30332, United States of America, ashapoval3@gatech.edu 1 - Managing Production and Sales in The Presence of Scarce Resources and Market Price Variability Xiaobo Li, University of Minnesota, 1006, 27th Ave SE, Apt. E,

Minneapolis, MN, 55414, United States of America, lixx3195@umn.edu, Guiyun Feng, Saif Benjaafar

A firm is subject to a production allowance over a compliance period, which consists of multiple production periods. The firm sells its output to a spot market.

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