2016 INFORMS Annual Meeting Program

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INFORMS Nashville – 2016
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3 - Unbundling Of Ancillary Service: How Does Price Discrimination
Of Main Product Matter?
Yao Cui, Cornell University, Ithaca, NY, United States,
, Izak Duenyas, Ozge Sahin
We consider a setting where the firm sells a main service and an ancillary service.
We study how the firm’s ability to charge discriminatory main service prices
affects the decision of whether to separately charge for the ancillary service, both
for the firm and for the industry.
4 - Centralized Vs. Decentralized Platform Markets
Daniela Saban, Stanford GSB,
Yash Kanoria
We consider a two-sided matching market with search frictions, and study the
impact of the matching technology and platform design on the efficacy of the
marketplace in serving its users. We find that a few different designs may be
optimal in different settings, with the best choice of design depending crucially on
the agents’ selectivity — likelihood that a potential match on the opposite side of
the market will be acceptable— and their cost of search —cost of discovering the
value of a potential match.
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206A-MCC
Innovation: Choices and Constraints
Invited: New Product Development
Invited Session
Chair: Pascale Crama, Singapore Management University, Singapore,
Singapore,
1 - The Role Of Form In Product Evolution: An Analysis Of Styles
Tian Chan, Emory University, Atlanta, GA, 3, United States,
, Jurgen Mihm, Manuel Sosa
Styles are groupings of product designs of similar form. We leverage on a recently
introduced database of styles among the more than 350,000 US design patents
granted from 1977 through 2010 to study how styles evolve over time. We study
and theorize how the interactions between design, technology, and organizations
lead to the emergence, growth, and decline of styles. We discuss the implications
of our results in furthering the understanding of how products evolve.
2 - Implementing Corporate Entrepreneurship With Contests
Lakshminarayana Nittala, University of California San Diego,
La Jolla, CA, 92037, United States, Sanjiv Erat,
Viswanathan Krishnan
We analyze the use of Innovation contests by firms as processes to implement
corporate entrepreneurship. The cost benefit analysis of such internal contests
brings forth interesting insights on the relation between the institutional features
and profitability of such contests.
3 - Contracts With Reciprocal Buyout Options
Pascale Crama, Singapore Management University,
, Niyazi Taneri
Joint research and development (R&D) allows firms to combine complementary
capabilities, but is difficult to organize in the face of uncertainties surrounding the
future product and skills needed to bring it to market. We analyze how contracts
with reciprocal buyout options can help to organize joint R&D to mutual
advantage when the parties to the contract can invest in capability-building.
SB39
207A-MCC
Mean Field Models and Economic Applications
Sponsored: Applied Probability
Sponsored Session
Chair: Ramesh Johari, Stanford University, Stanford, CA, United States,
1 - Mean Field Models For Economic Applications
Ramesh Johari, Stanford University,
This session will survey the use of mean field methods for analysis of strategic
interactions in dynamic markets. Dynamic markets can be viewed as a significant
special class of dynamic stochastic games; these are generally difficult to analyze,
and these difficulties are only exacerbated when the number of players is large.
We will discuss the use of large system asymptotics to simplify equilibrium
characterization and market design. A significant emphasis will be on discussion
of open applied directions for such methods. It will not be assumed that attendees
are experts in dynamic games or economic modeling; the goal is to introduce
applied probabilists to an exciting area of application.
SB40
207B-MCC
Applications of Data Envelopment Analysis
Invited: Data Envelopment Analysis
Invited Session
Chair: Daiki Wakayama, Komazawa University, 1-23-1-2409
komazawa, Setagaya-ku, Tokyo, 154-8525, Japan,
1 - Transmission Congestion And Eco-technology Innovation In
U.S. Electric Power Industry Measured by DEA
Environmental Assessment
Daiki Wakayama, Komazawa University, Tokyo, 3510021, Japan,
Mika Goto, Toshiyuki Sueyoshi
This study discusses a new use of DEA environmental assessment to measure a
possible occurrence of congestion in U.S. coal-fired power plants. The congestion
is classified into two categories: Undesirable Congestion (UC: indicating a
transmission limit) and Desirable Congestion (DC: indicating eco-technology
innovation). The identification of UC is important to avoid a cost increase and a
shortage of electricity, while investigating of DC can be effectively used to reduce
the amount of air pollution. This study finds that UC may occur on most of power
plants. In contract, DC may occur on a limited number of power plants.
2 - Study Of Capital Requirement And Bank Operating Efficiency
Yang Li, National University of Kaohsiung Kaohsiung,
Following the 2008 financial tsunami, the Bank of International Settlements
proposed Basel III in 2010, in which banks need to raise their capital adequacy
ratio in order to make them sound and safe. This study employs the two-stage
bootstrapped truncated regression model, proposed by Simar and Wilson (2007),
and takes into account undesirable outputs to investigate how the increases in
core, tier I, and total capital adequacy ratios influence the efficiency of Chinese
commercial banks. The data set is obtained from Bankscope for the period 2012-
2014. Empirical results are consistent with the schedule and intention set by Basel
III.
3 - Statistical Measure Of Goodness On Quantitative Models Of
Efficiency And Effectiveness
Abbas Attarwala, University of Waterloo, Waterloo, ON, Canada,
Stanko Dimitrov, Amer Obeidi
We propose a statistical measure of goodness on quantitative models of efficiency
and effectiveness. Our measure is used in a financial setting based on the Efficient
Market Hypothesis. Using information criterion we find the best fit model in a
family of functions. The goodness of fit of a model is traded against the number of
parameters required to achieve this approximation. We apply the developed
statistical measure on four models using two case studies of U.S and Indian bank
data.
4 - The Group And Individual Evaluation Using Fuzzy Dea
Hiroshi Morita, Osaka University, Suita, Japan,
Rui Dai, Minghao Chen
We use the fuzzy DEA to evaluate the performance based on the evaluators’
scores, which come from the evaluation questionnaire and considered as fuzzy
DMUs. We suppose the situation of teachers’ evaluation by students’ score. The
fuzzy DEA model is used to analyze the group evaluation of the performance
effectiveness. The DEA model is firstly used to analyze the scores for every DMU,
where the evaluators’ ambiguity or bias may bring the fuzziness of DMU. It also
compares the group evaluation and individual evaluation on efficiencies. This
approach is more objective and fair by avoiding the effect of the directly counting
scores which is easily affected by negative or positive attitude of evaluators.
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