Informs 2015

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INFORMS Philadelphia – 2015
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3 - Online Vs. Traditional Education: A Competitive Framework.
Vashkar Ghosh, University of Florida, Department of ISOM,
Gainesville, FL, 32611, United States of America,
, Gulver Karamemis,
Asoo Vakharia
Innovation and technological advancement are eliminating a lot of constraints
(eg. physical presence) bringing sweeping changes to higher education. We
examine how technology in higher education is likely to develop and what its
impacts will be on existing institutions. We examine a university’s incentive to
offer online programs in addition to the traditional program in a competitive
environment. We consider two different games: the simultaneous and the
sequential leader/follower location game.
4 - The Diffusion of Product Generation of Auto Industry
Gary Chao, Kutztown University, P.O. Box 730, Kutztown, PA,
18031, United States of America,
Maxwell Hsu
Instead of a whole new model, every a few years, automakers introduce a new
generation of their existing model to continue their success of old models or to
correct the mistakes in the old models. Based on the Bass diffusion theory, we
would like to study whether the different sales behavior among models and
generations in US market.
TC27
27-Room 404, Marriott
Evolutionary Bilevel Optimization
Sponsor: Multiple Criteria Decision Making
Sponsored Session
Chair: Kalyanmoy Deb, Koenig Endowed Chair Professor, Michigan
State University, 428 S. Shaw Lane, 2120 EB, East Lansing, MI, 48864,
United States of America,
1 - Bilevel Decision Making and Optimization
Pekka Malo, Assistant Professor, Aalto University School of
Business, Runeberginkatu 22-24, Helsinki, Finland,
, Ankur Sinha, Kalyanmoy Deb,
Jyrki Wallenius, Pekka Korhonen
Bilevel decision making and optimization problems are commonly framed as
leader-follower problems, where the leader desires to optimize his own decision
while taking the decisions of the follower into account. In such cases, the Pareto-
optimal frontier of the leader is influenced by the decision structure of the
follower facing multiple objectives. In this paper, we analyze this effect by
modeling the lower level decision maker using value functions.
2 - Handling Uncertainties in Decision Variables for Bilevel
Optimization Problems
Kalyanmoy Deb, Koenig Endowed Chair Professor, Michigan
State University, 428 S. Shaw Lane, 2120 EB, East Lansing, MI,
48864, United States of America, , Zhichao Lu
Bilevel problems involve two optimization problems in hierarchy and are
challenging problems often found in practice. In this talk, we present
evolutionary optimization algorithms and results on test and practical bilevel
problems with uncertainties in decision variables for finding robust and reliable
solutions. Uncertainties are considered for both lower and upper level variables
and problems with and without constraints.
3 - Expected Frontiers: Incorporating Weather Uncertainty into an
Integrated Bilevel Optimization
Moriah Bostian, Assistant Professor, Lewis & Clark College,
Department of Economics, 0615 SW Palatine Hill Rd, Portland,
OR, 97219, United States of America, ,
Gerald Whittaker, Bradley Barnhart, Rolf Fare, Shawna Grosskopf
Weather is a main driver of agricultural nutrient fate and transport in the
environment. We use bilevel optimization and a time-series bootstrap to evaluate
a water pollution policy subject to a distribution of weather outcomes. Our results
show that the deterministic Pareto frontier is sensitive to climate variation. Some
policy configurations that appear equally effective in a deterministic model setup
are strongly differentiated when weather uncertainty is included in the policy
evaluation.
TC28
28-Room 405, Marriott
New Frontiers in Market Design
Cluster: Auctions
Invited Session
Chair: Tunay Tunca,
1 - Integrating Market Makers, Limit Orders, and Continuous Trade in
Prediction Markets
Sebastien Lahaie, Microsoft Research, New York, NY, United
States of America, , Hoda Heidari,
David Pennock, Jenn Wortman Vaughan
We provide an algorithm that combines market makers and limit orders in a
prediction market with continuous trade. We define the notion of an approximate
trading path, a path in security space along which orders execute at their limit
prices to within a fixed tolerance. We show that a trading path with efficient
endpoint exists under supermodularity, but not in general. We develop an
algorithm for the general case, and evaluate it using real combinatorial
predictions over election outcomes.
2 - Multi-dimensional Virtual Values and Second-degree
Price Discrimination
Nima Haghpanah, MIT, Boston, MA, United States of America,
, Jason Hartline
We consider a problem of selling a product with multiple quality levels and derive
conditions that imply only selling highest quality is optimal. With multi-
dimensional preferences, virtual values from integration by parts on arbitrary
paths may not be incentive compatible. To resolve this issue, we impose
additional conditions that are satisfied only by a unique choice of paths, and
identify distributions that ensure the resulting virtual surplus is indeed point-wise
optimized by the mechanism.
3 - Optimal Pricing for Two-sided Platforms with Externalities
Levi Devalve, Duke University, Durham, NC,
United States of America, , Sasa Pekec
We consider pricing strategies of two-sided platforms serving consumers and
marketers. We show that competing platforms can achieve optimal profit through
“subscription-only” pricing. We identify settings in which competition increases
both consumer prices and advertising volumes. We also derive the platform’s
optimal price menu under incomplete information about the consumer’s disutility
for advertising. We characterize when the optimal menu includes free use and no
ad options.
4 - The Role of a Market Maker in Networked Cournot Competition
Desmond Cai, California Institute of Technology, 1200 E
California Blvd, Pasadena, CA, 91125, ,
Subhonmesh Bose, Adam Wierman
We study the role of a market maker (or market operator) in a transmission
constrained electricity market. We model the market as a one-shot networked
Cournot competition. We analyze the class of market maker objective functions
given by linear combinations of social welfare, residual social welfare, and
consumer surplus. We show that there exist cost functions for which the
maximum possible social welfare at equilibrium is not attained when the market
maker chooses to maximize social welfare.
TC29
29-Room 406, Marriott
Joint Session Analytics/HAS:
Analytics Innovations in Healthcare and Medicine
Sponsor: Analytics
Sponsored Session
Chair: Issac Shams, Postdoctoral Research Fellow, University of
Michigan, 1205 Beal Ave, Ann Arbor, United States of America,
1 - Improving Societal Outcomes in the Organ Donation Value Chain
Priyank Arora, Georgia Institute of Technology, 800 W Peachtree
St. NW, Atlanta, GA, 30308, United States of America,
, Ravi Subramanian
We examine a unique principal-agent problem in the cadaver organ donation
value chain (ODVC) where the principal in our case is a social planner that has an
overall quality-adjusted-life-year improvement objective. The agents include a
non-profit organ procurement organization with a volume-of-care objective and a
for-profit hospital (trauma center).
TC29