Informs 2015

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INFORMS Philadelphia – 2015
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MC59
59-Room 110B, CC
Strategy and Geography
Cluster: Strategy Science
Invited Session
Chair: Joanne Oxley, University of Toronto, 105 St. George Street,
Toronto, Canada,
1 - Agglomeration Economies and the Geographic Dimension of
Firm Boundaries
Juan Alcacer, Harvard Business School, Soldiers Field, Boston,
MA, United States of America,
Jasmina Chauvin
We provide new insights into firm boundary decisions by comparing location
strategies of multi-business and single-business firms in the same industry. We
find that establishments belonging to multi-business firms agglomerate more, and
the difference is related to the potential for sharing of labor resources. Our results
suggest that strategic decisions about the geographic and product boundaries of
the firm are intimately related, and that resource sharing is implicated in both
decision
2 - Ethnic Communities, Informal Institutions, and Foreign
Location Choice
Exequiel Hernandez, University of Pennsylvania, Wharton School
of Management, Philadelphia, PA, United States of America,
This study examines the institutional role of transnational ethnic communities in
MNEs’ location choice. We propose that ethnic communities fulfill a governance
function by facilitating entry into locations that present high transaction hazards
for foreign firms. We test our ideas using a unique dataset on the location choices
of Korean banks across Chinese provinces during 1992-2013, taking advantage of
a historical event that created a quasi-random distribution of Koreans across
provinces.
3 - Vertical Scope and Location Decisions: Evidence from us
Manufacturers in Mexico
Octavio Martinez, INCAE, Montefresco, Managua, Nicaragua,
, Joanne Oxley
We explore how vertical integration affects firms’ propensity to locate in dense
industrial clusters. We argue that since vertically-integrated firms are less
dependent on external economies they benefit less from locating within a dense
cluster, and thus may opt for lower-cost locations away from the cluster,
particularly in the face of high congestion costs. Analysis of location data on new
US-owned plants established in Mexico after NAFTA generates evidence
consistent with our claims.
4 - Community and Capital in Entrepreneurship and
Economic Growth
Olav Sorenson, Yale University, School of Management,
New Haven, CT, United States of America,
, Sampsa Samila
We argue that social and financial capital have a complementary relationship in
fostering innovation, entrepreneurship and economic growth. Using panel data
on metropolitan areas in the US, our analyses reveal that social integration – in
the microgeography of residential patterns – moderates the effect of venture
capital, with more integrated regions benefitting more from expansions in the
supply of financial capital.
MC60
60-Room 111A, CC
Project Based Learning
Sponsor: INFORM-ED
Sponsored Session
Chair: Palaniappa Krishnan, Associate Professor, University of
Delaware, 212 Townsend Hall, 531 S. College Avenue, Newark, DE,
19711, United States of America,
1 - A Stepwise Approach to Implement Flipped Learning in
Operations Management
Sungyong Choi, Assistant Professor, Yonsei University,
1 Yonseidae-gil, Wonju, Korea, Republic of,
This work describes a stepwise and evolutionary process to implement flipped
learning in Operations Management classes. It is important to determine initially
what should be done in flipped classrooms instead of unilateral lecture. I suggest
that a possible strategy can be class discussion based on TBL (Team-Based
Learning) and PBL (Problem-Based Learning). Then, I summarize the lessons
learned from my Operations Management class.
2 - Bank Service Simulation using ProModel
Palaniappa Krishnan, Associate Professor, University of Delaware,
212 Townsend Hall, 531 S.College Avenue, Newark, DE, 19711,
United States of America, , Guang Xiao
The problem on hand was to simulate the queuing service of a local branch of a
national bank “XYZ” on a Saturday. The students in the graduate simulation class
collected data of the customers coming into the branch and leaving the branch.
The students calculated the inter arrival data and the service time of the
tellers.They then set up the (M/M/c) queuing model.The students used ProModel
to conduct the simulation process. During this project, the students learned first
hand the importance of collecting good data. The students also worked with
different What-if scenarios in their simulation model.
3 - Math and the Mouse: Explorations of Math and Science at Walt
Disney World
Kevin Hutson, Associate Professor Of Mathematics, Furman
University, 330 Poinsett Hwy, Greenville, SC, 29613, United
States of America, Liz Bouzarth,
John Harris
We developed an immersive, three-week May course providing students the
opportunity to see applications of mathematics and science at Walt Disney World.
The course focused on typical problems faced by not only Disney professionals but
also the consumer who visits the theme parks. In this talk, we will discuss various
experiences and projects in which students engaged in the areas of scheduling,
touring, and queuing.
MC61
61-Room 111B, CC
Nonconvex and Stochastic Electricity Pricing
Sponsor: ENRE – Energy I – Electricity
Sponsored Session
Chair: Antonio Conejo, Prof., The Ohio State University, 286 Baker
Systems Engineering, 1971 Neil Avenue, Columbus, OH, 43210,
United States of America,
1 - Pricing Electricity in a Stochastic Market Model
with Non-convexities
Farzaneh Abbaspourtorbati, PhD Student, EPFL,
Route Cantonale, Lausanne, 1015, Switzerland,
This presentation describes a pricing scheme for a nonconvex stochastic market-
clearing model. Our goal is to obtain a set of uniform clearing prices so that the
producers recover their costs without uplifts. For this purpose, a model is
proposed whose objective is to minimize the duality gap of the relaxed primal
market-clearing problem subject to primal, dual, and integrality constraints, plus
cost recovery constraints that can be enforced at the market stage, in expectation
or per scenario.
2 - Convex Hull Pricing: Rigorous Analysis and
Implementation Challenges
Dane Schiro, ISO New England, 1 Sullivan Road, Holyoke, MA
01040, United States of America,
Eugene Litvinov, Feng Zhao, Tongxin Zheng
Several important properties of Convex Hull Pricing are analyzed by studying a
new primal formulation. Counterintuitive pricing outcomes are discussed and
illustrated through simple examples, and foreseeable difficulties with a realistic
application of the method are described. Because Convex Hull Pricing can only be
implemented for a very specific market framework, it is unlikely that its perceived
benefits could be realized in current electricity markets.
3 - Extended LMP – Pricing of Non-convexities and Demand
Responsive Resources
Congcong Wang, Market Design Engineer, MISO,
720 City Center Dr., Carmel, CA, United States of America,
, Dhiman Chatterjee
This presentation highlights MISO’s recent price formation efforts to provide
efficient market prices that are more accurately reflective of marginal system cost
under all conditions. Developed from the convex hull of the total cost function,
ELMP can effectively reflect the cost of committing and dispatching fast-start
resources to meet demands and has been proved to minimize uplift payments.
ELMP is then expanded to price demand response resources and other emergency
resources.
MC61