Informs 2015

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INFORMS Philadelphia – 2015
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2 - Eliciting Product Information via Public Rating and Local
Experience Sharing
Shihong Xiao, HKUST, Clear Water Bay, Hong Kong,
Hong Kong - PRC, 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 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, , 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.
WB44
44-Room 103B, CC
Assortment Optimization
Sponsor: Revenue Management and Pricing
Sponsored Session
Chair: Huseyin Topaloglu, Professor, Cornell University, 223 Rhodes
Hall, Ithaca, NY, 14853, United States of America,
1 - Assortment Optimization with Consideration Sets
Jacob Feldman, Cornell University, 136 Hoy Road, Ithaca, NY,
United States of America, 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, ,
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, 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.
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,
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,
, 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.
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,
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,
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,
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,
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,
1 - Contracting in Medical Equipment Maintenance Services:
An Empirical Investigation
Tian Chan, INSEAD, ,
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.
WB46