2015 Informs Annual Meeting

MC61

INFORMS Philadelphia – 2015

MC59 59-Room 110B, CC Strategy and Geography Cluster: Strategy Science Invited Session Chair: Joanne Oxley, University of Toronto, 105 St. George Street, Toronto, Canada, Joanne.Oxley@Rotman.UToronto.CA 1 - Agglomeration Economies and the Geographic Dimension of Firm Boundaries Juan Alcacer, Harvard Business School, Soldiers Field, Boston, MA, United States of America, jalcacer@hbs.edu, Jasmina Chauvin We provide new insights into firm boundary decisions by comparing location strategies of multi-business and single-business firms in the same industry. We find that establishments belonging to multi-business firms agglomerate more, and the difference is related to the potential for sharing of labor resources. Our results suggest that strategic decisions about the geographic and product boundaries of the firm are intimately related, and that resource sharing is implicated in both decision 2 - Ethnic Communities, Informal Institutions, and Foreign Location Choice Exequiel Hernandez, University of Pennsylvania, Wharton School of Management, Philadelphia, PA, United States of America, exequiel@wharton.upenn.edu This study examines the institutional role of transnational ethnic communities in MNEs’ location choice. We propose that ethnic communities fulfill a governance function by facilitating entry into locations that present high transaction hazards for foreign firms. We test our ideas using a unique dataset on the location choices of Korean banks across Chinese provinces during 1992-2013, taking advantage of a historical event that created a quasi-random distribution of Koreans across provinces. 3 - Vertical Scope and Location Decisions: Evidence from us Manufacturers in Mexico Octavio Martinez, INCAE, Montefresco, Managua, Nicaragua, Octavio.Martinez09@Rotman.Utoronto.Ca, Joanne Oxley We explore how vertical integration affects firms’ propensity to locate in dense industrial clusters. We argue that since vertically-integrated firms are less dependent on external economies they benefit less from locating within a dense cluster, and thus may opt for lower-cost locations away from the cluster, particularly in the face of high congestion costs. Analysis of location data on new US-owned plants established in Mexico after NAFTA generates evidence consistent with our claims. 4 - Community and Capital in Entrepreneurship and Economic Growth Olav Sorenson, Yale University, School of Management, We argue that social and financial capital have a complementary relationship in fostering innovation, entrepreneurship and economic growth. Using panel data on metropolitan areas in the US, our analyses reveal that social integration – in the microgeography of residential patterns – moderates the effect of venture capital, with more integrated regions benefitting more from expansions in the supply of financial capital. New Haven, CT, United States of America, olav.sorenson@yale.edu, Sampsa Samila

2 - Bank Service Simulation using ProModel Palaniappa Krishnan, Associate Professor, University of Delaware, 212 Townsend Hall, 531 S.College Avenue, Newark, DE, 19711, United States of America, baba@udel.edu, Guang Xiao The problem on hand was to simulate the queuing service of a local branch of a national bank “XYZ” on a Saturday. The students in the graduate simulation class collected data of the customers coming into the branch and leaving the branch. The students calculated the inter arrival data and the service time of the tellers.They then set up the (M/M/c) queuing model.The students used ProModel to conduct the simulation process. During this project, the students learned first hand the importance of collecting good data. The students also worked with different What-if scenarios in their simulation model. 3 - Math and the Mouse: Explorations of Math and Science at Walt Disney World Kevin Hutson, Associate Professor Of Mathematics, Furman University, 330 Poinsett Hwy, Greenville, SC, 29613, United States of America, kevin.hutson@furman.edu, Liz Bouzarth, John Harris We developed an immersive, three-week May course providing students the opportunity to see applications of mathematics and science at Walt Disney World. The course focused on typical problems faced by not only Disney professionals but also the consumer who visits the theme parks. In this talk, we will discuss various experiences and projects in which students engaged in the areas of scheduling, touring, and queuing. MC61 61-Room 111B, CC Nonconvex and Stochastic Electricity Pricing Sponsor: ENRE – Energy I – Electricity Sponsored Session Chair: Antonio Conejo, Prof., The Ohio State University, 286 Baker Systems Engineering, 1971 Neil Avenue, Columbus, OH, 43210, This presentation describes a pricing scheme for a nonconvex stochastic market- clearing model. Our goal is to obtain a set of uniform clearing prices so that the producers recover their costs without uplifts. For this purpose, a model is proposed whose objective is to minimize the duality gap of the relaxed primal market-clearing problem subject to primal, dual, and integrality constraints, plus cost recovery constraints that can be enforced at the market stage, in expectation or per scenario. 2 - Convex Hull Pricing: Rigorous Analysis and Implementation Challenges Dane Schiro, ISO New England, 1 Sullivan Road, Holyoke, MA 01040, United States of America, dschiro@iso-ne.com, Eugene Litvinov, Feng Zhao, Tongxin Zheng Several important properties of Convex Hull Pricing are analyzed by studying a new primal formulation. Counterintuitive pricing outcomes are discussed and illustrated through simple examples, and foreseeable difficulties with a realistic application of the method are described. Because Convex Hull Pricing can only be implemented for a very specific market framework, it is unlikely that its perceived benefits could be realized in current electricity markets. 3 - Extended LMP – Pricing of Non-convexities and Demand Responsive Resources Congcong Wang, Market Design Engineer, MISO, 720 City Center Dr., Carmel, CA, United States of America, cwang@misoenergy.org, Dhiman Chatterjee This presentation highlights MISO’s recent price formation efforts to provide efficient market prices that are more accurately reflective of marginal system cost under all conditions. Developed from the convex hull of the total cost function, ELMP can effectively reflect the cost of committing and dispatching fast-start resources to meet demands and has been proved to minimize uplift payments. ELMP is then expanded to price demand response resources and other emergency resources. United States of America, conejonavarro.1@osu.edu 1 - Pricing Electricity in a Stochastic Market Model with Non-convexities Farzaneh Abbaspourtorbati, PhD Student, EPFL, Route Cantonale, Lausanne, 1015, Switzerland, farzaneh.abbaspourtorbati@epfl.ch

MC60 60-Room 111A, CC Project Based Learning Sponsor: INFORM-ED Sponsored Session

Chair: Palaniappa Krishnan, Associate Professor, University of Delaware, 212 Townsend Hall, 531 S. College Avenue, Newark, DE, 19711, United States of America, baba@udel.edu 1 - A Stepwise Approach to Implement Flipped Learning in Operations Management Sungyong Choi, Assistant Professor, Yonsei University, 1 Yonseidae-gil, Wonju, Korea, Republic of, sungyongchoi@gmail.com This work describes a stepwise and evolutionary process to implement flipped learning in Operations Management classes. It is important to determine initially what should be done in flipped classrooms instead of unilateral lecture. I suggest that a possible strategy can be class discussion based on TBL (Team-Based Learning) and PBL (Problem-Based Learning). Then, I summarize the lessons learned from my Operations Management class.

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