Informs 2015

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INFORMS Philadelphia – 2015
498
WE60
60-Room 111A, CC
Operations/Economics Interface III
Contributed Session
Chair: Cigdem Gizem Korpeoglu, PhD Candidate, Carnegie Mellon
University Tepper School of Business, 5700 Bunkerhill Street,
Apt 804, Pittsburgh, PA, 15206, United States of America,
1 - Targeted Advertising and Privacy Concerns in Online
Advertising Markets
Nabita Penmetsa, Assistant Professor, University of Utah,
Eccles School of Business, Salt Lake City, UT, 84112,
United States of America,
We analyze the nature of competition between online advertising platforms in
order to understand how privacy concerns of users influence the competitive
outcome. The presence of heterogeneity in the user and the advertiser
populations leads to differentiation between the platforms in the level of privacy
protection that they offer to users and in the targeting capabilities that they offer
to advertisers. This differentiation leads to segmentation of both the user and the
advertiser markets.
2 - Asymmetric Trade Liberalization, Comparative Advantage and
Heterogeneous Firms
Wenxing Nie, Tongji University, 1239 Siping Road, Shanghai, P.R.
China, Shanghai, China, , Yingzhe Gu
Asymmetric trade liberalization occurs when a country suddenly slashes or soars
its trade barriers. When this happens, the country which takes initiative in
reducing trade barriers would suffer from net job destructions but enjoy better
welfare and higher factor rewards. The country which remains the same trade
barriers would benefit from net job creations but have lower welfare and factor
rewards. The comparative advantage industries have relatively higher factor
rewards and job destructions.
3 - Consumer Unions: Blessing or Curse?
Cigdem Gizem Korpeoglu, PhD Candidate, Carnegie Mellon
University Tepper School of Business, 5700 Bunkerhill Street
Apt 804, Pittsburgh, PA, 15206, United States of America,
We study whether coalitions of consumers are beneficial to consumers when
producers have market power. We refer to coalitions of consumers as consumer
unions and the number of consumers in a union as union size. We establish that
consumer welfare decreases with union size when the union size is above a
threshold. We also prove that consumer unions discourage producers’
investments, which may have repercussions for long-term consumer welfare.
WE61
61-Room 111B, CC
Operations/Economics Interface II
Contributed Session
Chair: Yunbin Shen, PhD Student, Tongji University,
1239th Siping Road, Shanghai, China,
1 - Judgment Error in Lottery Play: When the Hot-hand Meets the
Gambler’s Fallacy
Qingxia Kong, Universidad Adolfo Ibáñez, Santiago,
Santiago, Chile,
We demonstrate that lottery markets can exhibit the “hot-hand” phenomenon,
where past winning numbers tend to have greater share of the betting proportion
in future draws, even though past and the future events are independent. We use
two sets of lottery game data to show that both the gambler’s fallacy and hot-
hand fallacy can prevail under different gaming environments, contingent on the
design (e.g., prize structures) of the lottery games.
2 - Oligopoly Pricing with Reference-price Effects
Paola Labrecciosa, Monash University, Wellington Road, Clayton
Campus, Melbourne, Australia, ,
Luca Colombo
We propose an infinite-horizon continuous-time model of oligopolistic
competition with differentiated products and reference-price effects. We derive
open-loop and closed-loop pricing strategies. We show that: (i) reference-price
effects are pro-competitive; (ii) the equilibrium price can be either increasing or
decreasing over time; (iii) when the speed of adjustment of the reference price
becomes instantaneous, the stationary equilibrium price converges to the
marginal cost.
3 - The Effect of Industry-Specify Exchange Rate Movements on the
Manufacturing Productivity in China
Yunbin Shen, PhD Student, Tongji University, 1239th Siping
Road, Shanghai, China, , Yingzhe Gu,
Yulin Fu
The industry-specify real effective exchange rate (IREER) is more useful than the
aggregate exchange rate on analyzing the effect of exchange rate movements on
the total factor productivity (TFP). We use the product-level China customs data
to calculate the IREER of 30 industries. The results of quantile regression shows
that IREER has a significant impact on the TFP and many industries exhibit a
downward sloping quantile regression curve, which means the selection effect
and scale effect exist.
WE62
62-Room 112A, CC
Resilience in Power Systems
Cluster: Energy Systems: Design, Operation, Reliability
and Maintenance
Invited Session
Chair: Feng Qiu, Argonne National Laboratory, 9700 S. Cass Ave.,
Argonne, IL, 60439, United States of America,
1 - Enhancing Resilience of Power Systems with
Renewables Integration
Yunhe Hou, Assistant Professor, The University of Hong Kong,
Room 522, CYC Building, Hong Kong, Hong Kong - PRC,
Zhijun Qin
Resilience is well identified as one of the key functionaries of the future energy
delivery systems. The overall functionary requirements for a resilient power grid
will be discussed first. The systematic solution to improve the self-healing
capability, the key function of resilience, will be discussed in detail.Especially, the
method to involve the contribution of renewables during self-healing process will
be discussed.
2 - Electric Distribution Resilience – Asset vs. System Resilience to
Extreme Weather Events
Julia Phillips, Argonne National Laboratory, 9700 S Cass Ave,
Argonne, IL, United States of America,
With the increase in awareness and concern surrounding extreme weather events
due to climate change, resilience of the Nation’s critical lifeline infrastructure is
paramount. Capturing resilience of a single asset can be complicated, while
resilience for the system increases complexity dramatically. We focus on capturing
system resilience of electric distribution infrastructure to extreme weather events,
to include intangible resilience activities, such as planning, training and
exercising.
3 - Assessing and Improving the Operational Resilience of
Interdependent Energy Infrastructure Systems
David Alderson, Associate Professor, Naval Postgraduate School,
1411 Cunningham Rd, Monterey, CA, 93943, United States of
America, , W. Matthew Carlyle,
Michael Dickenson
We formulate and solve a model of interdependent fuel and electric power
infrastructure systems that includes the fuel required to run electric power
generators and the power required to pump fuel. Our model determines a set of
fuel and power flows that yield minimum operating cost of both systems. We
contrast solutions for individual system operation with a global solution for the
combined system, and consider both worst-case disruptions and best possible
mitigations to the combined system.
4 - Accident Risk Assessment in Fossil Energy Chains using a
Bayesian Model Averaging Approach
Matteo Spada, Senior Researcher, Paul Scherrer Institut,
OHSA/D19, Villigen PSI, AG, 5232, Switzerland,
Peter Burgherr
This study analyzed the risk, and its uncertainty, for fatal accidents within full
fossil energy chains, collected in the Energy-related Severe Accident Database
(ENSAD), through the application of a Bayesian Model Averaging. The proposed
approach provides a unified framework that comprehensively covers accident
risks in energy chains, and allows calculating specific risk indicators, including
their uncertainties, to be used in a holistic evaluation of energy technologies.
WE60