2016 INFORMS Annual Meeting Program

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INFORMS Nashville – 2016
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TD86
GIbson Board Room-Omni
Marketing VII
Contributed Session
Chair: Zhouyang Lu, Hohai University, Business School, Hohai Univ, 8
Fochengxilu, Jiangning, Nanjing, 211100, China,
1 - Using Trade-in Programs To Mediate Secondary Market Effects In
Platform Competition
Chia-Hang Li, PhD Candidate, Illinois Institute of Technology,
10 W. 35th Street, Chicago, IL, 60616, United States,
, David Richardson, Elizabeth J Durango-Cohen
We develop an analytical model of sales of successive generations of a consumer
durable in which each generation brings an exogenous quality improvement to
vertically differentiated consumers who can sell legacy products in a secondary
market. Our model provides closed form solutions for the optimum pricing policy
with and without trade-in programs. We use comparative statics on the model to
characterize the circumstances in which trade-in programs prove advantageous
and gain insights into how they increase profits in monopoly and duopoly settings
with network effects.
2 - Evaluating Start Ups Marketing Strategies Using An Agent Based
Modeling And Simulation Approach.
Ali Arian, Graduate Student, University of Arizona, 1202 e 2nd
street, Tucson, AZ, 85721, United States, ,
Yi-Chang Chiu
Marketing for a start-up company is a great challenge due to limited capital and
intellectual resources and lack of brand recognition and visibility. This talk using
an agent based simulation and modeling (ABMS) approach to evaluate various
marketing opportunities. Existing and past data were used to calibrate the model.
3 - Brand Leadership, Competitive Pressure, And Social Marketing In
The High-end Fashion Industry
Cuicui Chen, PhD Candidate, Harvard University, 79 JFK St,
Cambridge, MA, 02138, United States,
Jorge Ale Chilet, Yusan Lin
While the fashion industry has been subject to mostly qualitative research, we
adopt a data-driven approach to study high-end fashion brands’ leadership,
competitive pressure and social marketing. Applying Natural Language Processing
to department store listings, expert runway reviews, and Instagram posts, we find
that high-end fashion brands respond to competitive pressure more by relying on
brand-building posts (such as celebrity patronage and press mentions) on social
media, than by sharing product information. Furthermore, this effect is stronger
for following, or adopting, brands than leading, or innovative, brands. We
develop a microeconomic model to explain these findings.
4 - A Game Theoretic Approach For Achieving Higher Communities
Satisfaction On Ppp Infrastructure Projects
Zhouyang Lu, Hohai University, Business School, Hohai Univ, 8
Fochengxilu, Jiangning, Nanjing, 211100, China,
Jason Salim, Xuemei Su
PPP are often mistaken as merely a relationship between private and government
agencies. Real “public” (the community) is often ignored, and public
marginalization may cause future problem, like protests and/ or low demand.
Analysis based on game theory shows that chance of community acceptance
towards a project is inversely related to the chance of PPP agents behaving fairly
towards the community.
TD87
Broadway A-Omni
Economics I
Contributed Session
Chair: Youzong Xu, Wuhan, China,
1 - Pricing In A Robust Approach To Electricity Markets
Xiaolong Kuang, Lehigh University, 14 Duh Drive, Apt 324,
Bethlehem, PA, 18015, United States, ,
Alberto J Lamadrid, Luis F Zuluaga
The existence of market clearing prices and the economic interpretations of strong
duality for integer programs in the economic analysis of markets with
nonconvexities have been studied in literature. We follow this line of research
and study the market clearing prices in a robust approach to electricity markets.
2 - Voting With Behavioral Heterogeneity
Youzong Xu, Xi’an Jiaotong-Liverpool University, Wuchan,
Suzhou, China,
This paper studies collective decisions made by behaviorally heterogeneous voters
with asymmetric information. Here “behavioral heterogeneity” models voters’
different levels of sophistication in handling information, in the sense that some
voters take the information revealed by pivotality into account when making
decisions (call “sophisticated voters”), while other voters vote only according to
their private information (called “sincere voters”). The presence of sincere voters
enriches information revelation of pivotality and such enriched information
exacerbates the “pivotal voter’s curse.” The exacerbation of the “pivotal voter’s
curse” can improve collective decisions
3 - Committee Size And Resistance To Information Manipulation
Youzong Xu, Xi’an Jiaotong-Liverpool University, Suzhou, China,
Bo Li
Consider a committee that needs to choose between two alternatives. This
committee employs an agent (she) who may be biased to provide information for
the committee members to make the decision. Say that the committee resists
information manipulation if the biased agent’s desired alternative is chosen with a
lower probability when the committee knows that the agent may be biased than
when the committee knows for sure that the agents is unbiased. We show that
small-size committees resist information manipulation while large-size
committees do not. Actually, when committee size is large enough, all committee
members act as if they entirely ignore the possibility that the agent may be biased.
4 - Surviving Recessions: Relationships In Thoroughbred
Horse Industry
Cristina Nistor, Chapman University, One University Drive,
Orange, CA, 92866, United States,
Darcy Fudge Kamal
The great recession of 2008 affected the entire US and world economy. The
Thoroughbred horse industry emerged from the recession with higher quality,
and less overall risk in the market. We study how the Thoroughbred horse
industry was affected by the recession by using a large longitudinal dataset
containing details of relationships between Thoroughbred stud farms and
nurseries that spans ten years of detailed transactions between 2005 and 2014.
Our results indicate that the increase in quality is more pronounced in situations
where firms transact with each other repeatedly in a relationship.
TD88
Broadway B-Omni
Queues and Server Behavior
Sponsored: Manufacturing & Service Oper Mgmt
Sponsored Session
Chair: Mirko Kremer, Frankfurt School of Finance and Management
gGmbh, Frankfurt, Germany,
1 - Goal Setting In Teams: A Real-effort Coordination Experiment
James Fan, Penn State University, State College, PA, 16802,
United States, Joaquin Gomez-Minambres
We experimentally study the impact of non-binding goals for a team of workers
facing high levels of strategic complementarity. These production settings include
assembly lines and group projects. Participants act as workers and managers on a
team completing a real-effort task that contributes towards team production. The
manager can assign a goal to her team that does not impact monetary payoffs.
Consistent with our theoretical predictions, we find that when managers are able
to set goals for the team, team production increases. The positive effect of goal
setting is especially strong when goals are challenging but attainable for the weak-
link worker, whose output determines team production.
2 - Experiment Of Hospital Admission Decision Behavior Under
Congestion And Patient Severity Uncertainty
Song-Hee Kim, Marshall School of Business, University of
Soouthern California, Los Angeles, CA, United States,
Hospitals have limited capacity to admit patients who arrive at different wards,
such as an intensive care unit. We explore how physicians make decisions to
admit patients in order to understand how to improve this important decision-
making process. Specifically, in a controlled laboratory experiment setting, we
observed and compared admission decision-making behaviors based on current
unit occupancy and severity of arriving patient conditions.
3 - Social Norms In Customer-operated Service Systems
Chen Jin, Northwestern University,
We study whether and how social norms evolve in, and affect the performance of,
customer-operated service systems, where service times are (partially)
endogenously determined by the customers. We find that service times are
positively serially correlated and explore several boundary conditions of this
phenomenon, as well as managerial levers to mitigate its adverse impact on
system level metrics. Our results complement a growing literature that
demonstrates the effect of system load on service times in server-operated
systems.
TD88