2016 INFORMS Annual Meeting Program

501 / 561

INFORMS Nashville – 2016
501
WE55
Music Row 3- Omni
E Business/Commerce II
Contributed Session
Chair: Avijit Sarkar, Associate Professor, University of Redlands,
1200 E Colton Avenue, Redlands, CA, 92373, United States,
1 - Why Some Markets Refuse Innovation And Entrepreneurship,
When They Say They Love It: Evidence From Uber’s
Transportation Network Service
Robert Seamans, New York University-Stern, 1 Washington Square
Village, # 7J, New York, NY, 10012, United States,
Sukhun Kang, Yongwook Paik
We study how established firms use non-market strategy to slow entry by sharing
economy firms. We study this issue using a unique dataset that includes data on
Uber’s expansion into various U.S. cities during 2011-2015, together with data on
political contributions and election outcomes. We find that the more politically
entrenched a market is, the more resistance the entrant faces when working to
commercialize its innovation. This study has theoretical, managerial, and policy
implications for the ever-growing sharing economy, and highlights that, despite
the benefits of innovation, there often times exists strenuous resistance to it,
particularly from established firms in a market.
2 - The Effect Of Individual Characteristics On Online Purchase
Decision Processes And Outcomes
K. Nadia Papamichail, Senior Lecturer (Associate Professor),
University of Manchester, Manchester Business School,
Booth Street East, Manchester, M15 6PB, United Kingdom,
, Sahar Karimi,
Christopher P. Holland
This paper presents a typology of online purchase archetypes based on
consumers’ individual characteristics such as decision-making style and
knowledge of product. Video material has been collected and analysed to capture
how online purchase decision making processes unfold for different archetypes.
This is followed by an empirical study that explores the effect of decision-making
style and knowledge of product on decision-related outcomes such as satisfaction
with process and satisfaction with choice. Practical implications for online retailers
are discussed.
3 - Subscribe Or Sell: Itunes Versus Google Play Music All Access
Hooman Hidaji, Alberta School of Business, 2-24 Alberta School of
Business, Edmonton, AB, T6G 2R6, Canada,
Recently, subscription has become a popular method of user monetization in
online media business along with selling model. It is expected that firms utilize
both approaches to cover as much demand as possible. However, pricing strategy
of the firms is crucial in determining the demand for the two. In this study, using
an economic model with endogenous demand, we set to model how the firm
decides on the business model. Different user types and business model-
dependent demand are considered. We also look into advertising and group plans
(such as family plans) for such services in the online entertainment industry.
4 - Socioeconomic Determinants And Geographic Patterns Of
Internet Use For E-commerce And E-entertainment In Counties
Of The United States
Avijit Sarkar, Associate Professor, University of Redlands,
1200 E Colton Avenue, Redlands, CA, 92373, United States,
, James B Pick
This research analyzes social-economic, innovation, and social capital influences
on the use of the internet to access e-commerce and e-entertainment services for
a large sample of U.S. counties. Nationwide geographic patterns and clustering of
e-commerce and e-entertainment use of the internet are identified and explained.
A Spatially Aware Technology Utilization Model explicitly considers underlying
geographic relationships between model variables and diagnoses spatial bias in
standard multivariate analysis. Implications for the digital divide in the United
States are discussed and policies to expand use of the internet for e-commerce
and e-entertainment use are recommended.
WE56
Music Row 4- Omni
Decision Support Systems III
Contributed Session
Chair: Munirpallam A Venkataramanan, Professor, Indiana University,
Bryan Hall, 100, 107 S. Indiana Avenue, Bloomington, IN, 47405,
United States,
1 - An Operational Control Design Methodology For Warehouse
Order Fulfillment
Timothy Sprock, Post Doctoral Fellow, Georgia Institute of
Technology, 755 Ferst Dr, NW, Georgia Institute of Technology,
Atlanta, GA, 30332, United States,
Smart operational control mechanisms for material handling systems must not
only integrate real-time data from system operations, but also formulate and solve
a wide variety of optimal-control analyses and then translate the results into
executable commands. Automated and cost-effective access to multiple analyses
from a single conceptual model of the target system would broaden the usage and
implementation of analysis-based decision support and system optimization. The
fundamental contribution of this research is concerned with interoperability and
bridging the gap between operations research analysis models and practical
applications of the results.
2 - Analytic Approaches In Higher Education Administration
Munirpallam A Venkataramanan, Professor, Indiana University,
Bryan Hall, 100, 107 S. Indiana Avenue, Bloomington, IN, 47405,
United States, , Kathryn Ernstberger
Analytic grounded decision making offers new ways for universities to make
operational decisions as well as address student teaching and learning issues. An
overview of platforms available for such an approach is provided along with a
discussion of some best practices. Recent successes at Indiana University are
highlighted.
WE58
Music Row 6- Omni
Finance IV
Contributed Session
1 - Re-Evaluating The Performance Of Markowitz’s Portfolio
Selection Model In Terms Of The Distance Measure Approach
Hunbae Jeon, Master Student, Yonsei University, 109-1902, Lotte
Apt., 31, Saemal-ro, Guro-gu, School of Business (Bld.#212)
Rm.#301, Seoul, 08291, Korea, Republic of,
, Hongseon Kim, Seongmoon Kim
We have used Sharpe Ratio to evaluate the performance. However, it couldn’t
evaluate portfolios itself, because it is no more than checking the risk and return.
Therefore we suggest distance measure approach as a new method to evaluate the
portfolio performance. In this paper, we construct the optimal portfolio by using
Markowitz’s model, and generate random portfolios, and then calculate some
distances between optimal and random portfolios. Then we show Euclidean
distance is the best for analyzing the performance of Markowitz’s model by
comparing differences in terms of these distances.
2 - Official Visits And Firms’ Employee: Evidences From China
Qiu Muqing, Tongji University, Siping Road, Shanghai, China,
Different from the articles which discuss how to seek the protection of
government by political connections from the angle of the firms, this paper
studies how to achieve the social goals by official visits from the angle of Chinese
government. We find that political connections are common in countries around
the world, but official visits have “Chinese Characteristics”. The paper finds that
the officials are inclined to visit the firms which can absorb more employees.
Official visits can increase the number of employees, especially for employees
with college degree or below. This relation is much stronger in state-owned firms.
3 - A Real Option Analysis On Performance-sensitive Debt
Bo Liu, University of Electronic Science and Technology of China,
No.2006, Xiyuan Ave, West Hi-Tech Zone, Chengdu, 611731,
China,
This paper adopts a real option approach to examine how the use of Performance-
Sensitive Debt (PSD) contract affects the inefficiencies arising from financing
constraints. The results show that if financing constraints are sufficiently weak,
the use of PSD encourages the constrained firm to use a higher investment
threshold and thus leads to a significant decrease in ex ante firm value compared
to fixed-coupon debt. These results further imply that although PSD makes more
financially constrained firms better off, less financially constrained firms face a
trade-off between lower efficiency in ex ante firm value and higher efficiency in
investment and financing decisions.
WE58