Informs 2015

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INFORMS Philadelphia – 2015
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3 - Deal or No Deal? The Quality Implications of Online Daily Deals
and Competition
Jorge Mejia, University of Maryland, Robert H. Smith School of
Business, College Park, MD, United States of America,
Anand Gopal, Michael Trusov
Consumers use online reviews to inform purchasing decisions about many
products / services. Moreover, online daily deals have become an important part
of the marketing mix for merchants. The objective of this study is to understand
the effect of daily deals on consumers’ quality perceptions, expressed through
online reviews and investigate potential moderators for this effect, such as
merchant characteristics and competition. We combine online reviews for
restaurants from Yelp with data from online deals in a major American
metropolitan area. We find that online deals have a significant negative effect on
online reviews. Additionally, this effect is moderated by certain merchant
characteristics such as price point and restaurant age. We also find that the
reviews of merchants who do not offer deals are affected by nearby deal
competition. We replicate our empirical findings by conducting three lab studies
using subjects from MTurk and find consistent results, thus showing robustness.
4 - Swayed by the Numbers: The Consequences of Displaying
Review Counts in Purchase Decisions
Jared Watson, University of Maryland, College Park, MD, United
States of America, , Michael Trusov,
Anastasiya Pocheptsova
Online retailers often display customers’ review to aid consumers’ decision-
making. While prior literature postulates that an increase in review counts leads
to an increase in consumers’ purchase intentions, the authors find an important
corollary: holding purchase intentions constant, revealing a small review count
systematically biases consumers’ preferences between choice options. Further,
withholding review count information increases purchase intention relative to a
small review count. These findings are contrasted with current retailer practices of
revealing small review count information.
TD53
53-Room 107B, CC
Inventory and Information Sharing
Sponsor: Behavioral Operations Management
Sponsored Session
Chair: Enno Siemsen, Associate Professor, University of Minnesota,
321 19th Ave S, Minneapolis, MN, 55455, United States of America,
1 - Decision Dependent Bounded Rationality in Dual Sales
Channel Management
Ozalp Ozer, The University of Texas at Dallas, 800 West Campbell
Road, Richardson, TX, United States of America,
, Kay-Yut Chen
We experimentally study behaviors in a dual sales channel in which a
manufacturer sells through his direct channel and an independent retailer. The
channels compete on demand. The manufacturer sets the wholesale price for the
retailer, and also delivery times for customers in his direct channel. The retailer
decides on its inventory level. We show and discuss why bounded rationality
differs, in the same subject pool, across three decisions and model the behavior as
quantal response equilibrium.
2 - Behavioral Inventory Sharing
Enno Siemsen, Associate Professor, University of Minnesota, 321
19th Ave S, Minneapolis, MN, 55455, United States of America,
, Hui Zhao
The benefits of aggregating demand for reducing required safety stock
investments in supply chains are well known. Yet if decision makers are
decentralized and keep separate stockpiles of inventory, these benefits can only be
reaped if they agree to transship their inventory to others. Using behavioral
experiments, we explore the conditions under which decision makers share
inventory, and the implication of inventory sharing on initial order quantities.
3 - Communication Strategies in Assembly Systems:
An Experimental Investigation
Jud Kenney, McGill University, Bronfman Building, Montreal,
Canada, , Jim Engle-Warnick,
Saibal Ray
This study investigates how supply chain partners in an assembly system react to
three different strategies of communicating supply risk. Our behavioral
experiment uses a minimum game to model suppliers deciding on the amount of
capacity to build when facing certain end customer demand, but uncertain supply
from their peers. We find effective communication strategies can significantly
improve performance and such improvements are more significant under higher
critical ratios.
4 - Is Non-linear Pricing Contract Always Better than Linear
Pricing Contract?
Guangwen Kong, University of Minnesota, 111 Church Street SE,
Minneapolis, MN, 55414, United States of America,
, Tony Haitao Cui
We study supply chain contracts with consideration of information sharing and
bounded rationality. We examine a dyadic supply chain where a supplier with
more accurate demand information sells products to a bounded rational retailer.
The research suggests that the supplier can be better-off by using a linear pricing
contract than adopting a buy-back contract. The supplier either shares
information with the retailer or help improve the retailer’s bounded rationality
but not both in equilibrium.
TD54
54-Room 108A, CC
Meta-algorithms: From Algorithm Tuning and
Configuration to Algorithm Portfolios
Cluster: Tutorials
Invited Session
Chair: Meinolf Sellmann, IBM, Yorktown Heights, NY,
United States of America
1 - Meta-algorithms: from Algorithm Tuning and Configuration to
Algorithm Portfolios
Meinolf Sellmann, IBM, Yorktown Heights, NY,
United States of America
Efficiency and accuracy are of primary concern when developing analytics
solutions in OR. Typically, there is more than one possible algorithmic approach
and none dominates the others. Moreover, algorithms usually have implicit or
explicit parameters that greatly affect performance. Meta-algorithmics focuses on
the development of effective automatic tools that tune algorithm parameters and,
at runtime, choose the approach best suited for the given input. Here we
summarize the lessons learned when devising such tools.
TD55
55-Room 108B, CC
Data Envelopment Analysis (DEA)
Contributed Session
Chair: Samir Srairi, Ministry of Higher Education and Scientific
Research, 14 Avenue de Tunis, Arian, 2080, Tunisia,
1 - Combination of Hybrid Two Level DEA with SVM for Indicator
Weighting in Financial Failure Prediction
Chao Huang, Southeast University, Xuan Wu District, Sipailou
No.2, Nanjing, 210096, China,
A new WPF two level DEA is proposed to identify the bankruptcy firms by
constructing a worst-practice frontier. Combining traditional BPF two level DEA
and WPF two level DEA, a hybrid model is put forward as a tool for cooperates
financial failure prediction. To improve the accuracy, a new indicator weighting
method based on SVM is also proposed. The empirical results show that the
proposed hybrid method has excellent bankruptcy prediction ability.
2 - A Cross-Dynamic Evaluation of Warehouse Operations
Jose Humberto Ablanedo Rosas, Associate Professor, University of
Texas at El Paso, 500 W University Avenue, Marketing &
Management Department, El Paso, TX, 79968, United States of
America, , Faruk Arslan
We report a cross-dynamic comparison of distribution centers worldwide. This
problem has been analyzed with the Malmquist productivity index; we introduce
an approach based on cross-efficiency assessment which eliminates the drawbacks
of traditional cross-efficiency methods. A comparison between both approaches is
discussed and managerial recommendations for decision makers are derived.
3 - Performance Evaluation of Dynamic Supply Chain using Dea
Somayeh Mamizadeh-Chatghayeh, Asia Business Clusters &
Networks Development (ABCD) Foundation Cooperation,
Tehran, Tehran, Iran,
Abbas Ali Noura
One of the main researches in supply chain management is to improve the overall
efficiency based on dynamic performance of supply chain. In this paper, by
developing the basic dynamic model, different methods for evaluating the supply
chain are studied. Dynamic Data Evolution Analysis as an efficient tool is new
research focus in supply chain benchmarking. We develop DDEA models that can
be evaluating the overall efficiency of supply chains and subsystems.
TD53