Informs 2015

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INFORMS Philadelphia – 2015
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4 - Why Markdown as Pricing Modality? Role of Entry Threat
Elodie Adida, University of California at Riverside, Riverside, CA,
, Ozalp Ozer
Retailers commonly use markdowns jointly with inventory rationing with the
goal of creating scarcity and segmenting the market when consumers are
strategic. We show that the presence of competition can help explain why
markdown is a more sustainable pricing strategy than everyday-low-price. We
also give a new rationale for inventory rationing as a need to maintain a market
share for the competitor. We investigate how consumers’ behavioral motives
affect this rationing effect.
SB46
46-Room 104A, CC
Drivers of Employee Productivity in Service Settings
Sponsor: Manufacturing & Service Oper Mgmt/Service Operations
Sponsored Session
Chair: Anita Tucker, Associate Professor, Brandeis University,
415 South Street, Waltham, MA, 02453, United States of America,
1 - Collaboration and Professional Labor Productivity:
An Empirical Study of Physician Workflows
Lu Wang, Kellogg School of Management, Northwestern
University, 2001 Sheridan Road, 5th Floor, Evanston, IL, 60201,
United States of America, ,
Jan Van Mieghem, Kevin O’leary, Itai Gurvich
Theory predicts that simultaneous collaboration among professionals can
introduce a capacity loss due to synchronization requirements. We empirically
test the theory with the data collected from closely observing physicians at
Northwestern Memorial Hospital in Chicago. We show that there exists a 21%
potential productivity improvement if the task preemptions inherent in
collaboration can be fully eliminated and estimate that more than 50% can be
achieved by eliminating the task preemption cost.
2 - When You Work with a Super Man, Will You Learn to Fly?
An Empirical Study of the Impact of Coworkers
Fangyun (Tom) Tan, Assistant Professor, Cox Business School,
SMU, 6212 Bishop Blvd, Dallas, TX, 75275, United States of
America, Serguei Netessine
We use a large detailed operational data set from a casual restaurant chain to
understand how peer effects affect servers’ performance. In particular, we analyze
the effect of coworkers’ sales ability on how servers expend efforts in service
speed (measured as meal duration) and quality (measured as sales), separately.
Our study highlights a need for more nuanced approaches to leveraging peer
effects in optimal scheduling decisions.
3 - How will the Increased Workload of Primary Care Providers Affect
Patient Health?
Hessam Bavafa, Assistant Professor, Wisconsin School of Business,
Madison, WI, United States of America,
With the implementation of the Affordable Care Act in the United States, the
healthcare system will experience an influx of newly insured patients with
complex medical needs, thus increasing the workload of the primary care
providers (PCPs). It is not clear how this increased workload will affect patient
care. In this paper, we seek to understand the impact of primary care provider
(PCP) workload on patients’ access to care using a large dataset from the Veterans
Health Administration.
4 - Queue Discretion, Batching, and Performance in Teleradiology
Maria Ibanez, Doctoral Candidate, Harvard Business School,
Soldiers Field, Boston, MA, 02163, United States of America,
Jonathan Clark, Robert Huckman,
Bradley Staats
We examine how knowledge workers exert discretion on the order in which to
execute tasks and the subsequent performance implications of those choices.
Using two and a half years of data on more than 2.7 million cases read by
outsourced radiologists working at one of the largest teleradiology firms in the
US, we explore potential heuristics in ordering decisions, and how this
endogenous ordering affects performance.
SB47
47-Room 104B, CC
The Sharing Economy
Sponsor: Manufacturing & Service Oper Mgmt/Sustainable
Operations
Sponsored Session
Chair: Saif Benjaafar, Professor, University of Minnesota, 111 Church
Street SE, Minneapolis, MN, 55455, United States of America,
1 - Collaborative Consumption in Peer-to-peer Car Sharing
Saif Benjaafar, Professor, University of Minnesota, 111 Church
Street SE, Minneapolis, MN, 55455, United States of America,
Guangwen Kong, Xiang Li
We consider a two-sided market consisting of car owners and renters, mediated
by an online platform. Individuals decide on whether to be owners or renters and
the platform decides on rental prices, commission rates, and membership fees. We
compare car ownership and cart usage in economies with and without sharing
and the corresponding social welfare, including environmental impact.
2 - The Last Mile of the Sharing Economy
Arun Sundararajan, Professor And Rosen Faculty Fellow, NYU, 44
West 4th Street, New York, NY, 10012, United States of America,
Disruption associated with what is called the “sharing economy” is altering local
logistics dramatically. In my talk, I will discuss recent research on the new
economics of the last mile for physical products, analyzing whether they favor the
emergence of Amazon-like digital channels that reduce physical store to
intelligent warehouses, or an expansion of the footprint of local retail powered by
third-party peer-to-peer delivery services.
3 - Collaborative Consumption: Strategic and Economic Implications
of Product Sharing
Baojun Jiang, Olin Business School, Washington University,
St. Louis, MO, 63130, United States of America,
Lin Tian
This paper examines the strategic and economic impacts of collaborative
consumption–product sharing among consumers. Our analysis shows that friction
in the product-sharing market may have a non-monotonic effect on the firm’s
profits, consumer surplus, and social welfare. When the firm strategically chooses
its retail price, product sharing among consumers can be either win-win or lose-
lose for the firm and the consumers, depending on whether the firm’s marginal
cost is high or low.
4 - The Sharing Newsboys
Ming Hu, Associate Professor, University of Toronto, 105 St.
George Street, Toronto, Canada,
We study resource sharing behavior among a network of connected newsboys.
Our focus is to investigate the impact of network structure on the sharing
behaviors.
SB48
48-Room 105A, CC
Quality and Compliance Enforcement in the
Supply Chain
Sponsor: Manufacturing & Service Oper Mgmt/Sustainable
Operations
Sponsored Session
Chair: Saed Alizamir, Assistant Professor, Yale University,
165 Whitney Ave, New Haven, CT, 06511, United States of America,
1 - Quality Certification under Poor Legal Enforcement
Mariya Bondareva, PhD Candidate, University of Rochester,
Simon School PhD Program, UoR, 500 Joseph C.Wilson B.,4-345
Carol Simon, Rochester, NY, 14627, United States of America,
, Edieal Pinker
Outsourcing to developing countries is complicated by imperfect quality
monitoring and inefficient legal enforcement. To ensure quality, the brands can
use self-enforcing contracts. We study dynamic relational contracts using
certification, inspections and penalties and determine when the certification
mechanism is justified. The optimal equilibrium is characterized by non-
decreasing expected profits for suppliers, non-decreasing penalties for quality
failures and non-increasing defect rates.
SB48