2016 INFORMS Annual Meeting Program

MB07

INFORMS Nashville – 2016

MB07 102B-MCC

efforts worldwide, and how voluntary vs. mandatary CSR reporting impacts the effectiveness of CSR. 2 - Surfacing The Submerged State: Operational Transparency Increases Trust In And Engagement With Government Services Ryan Buell, Harvard Business School, rbuell@hbs.edu Ethan Porter, Michael Norton As Americans’ trust in government nears historic lows, frustration with government performance approaches record highs. We propose that Americans’ views of government can be reshaped by increasing government’s operational transparency - that is, the extent to which citizens can see the often-hidden work that government performs. Across three studies using laboratory and field data, we provide converging evidence that increasing operational transparency can improve citizens’ views of and increase and sustain their engagement with government. 3 - Mobile Technology In Retail Jose A Guajardo, University of California-Berkeley, jguajardo@berkeley.edu We empirically analyze central aspects of the impact of mobile technology in retail in the context of the overall customer shopping experience. 4 - Ration Gaming And The Bullwhip Effect: A Structural Econometric Study Rob Bray, Kellogg, robertlbray@gmail.com We develop a dynamic discrete choice estimator of (s, S) inventory models. We apply this estimator to a 5,320-SKU, 1,371-day sample from a Chinese supermarket to quantify the effect of ration gaming. MB09 103B-MCC Development of Electricity Systems Invited: Energy Systems Management Invited Session Chair: Todd Levin, Argonne National Laboratory, 970 S. Cass Avenue, Lemont, IL, 60439, United States, tlevin@anl.gov 1 - Capacity Expansion Planning With Intermittent Energy Resources Dong Gu Choi, Pohang University of Science and Technology (POSTECH), Pohang, Korea, Republic of, dgchoi@postech.ac.kr, Daiki Min, Jonghyun Ryu Recently, renewable energy resources have been rapidly integrated into the electricity sector around the world and some recent studies about the capacity expansion planning for electric power system integrating renewable energies have been published. However, the most of these studies did not explicitly interpret the impact of the intermittency and non-dispatchability of some renewable energies on the system reliability. In this study, we propose a stochastic programming model to establish the long-term electricity capacity expansion planning for an electric power system integrating large size intermittent renewable energies with the consideration of the system reliability. 2 - Optimal Capacity Planning In Non-Interconnected Regions: Case Of Saudi Arabia Bandar Alqahtani, Duke University, 9 Circuit drive, Box 90328, Durham, NC, 27514, United States, dalia.patino@duke.edu, Dalia Patino Echeverri We conduct a techno-economic and environmental evaluation of the electricity generation options available to supply residential and commercial loads in remote areas in Saudi Arabia, over the next 25 years. A capacity planning model considers and compares the alternatives of developing distributed electricity generation versus the option of building a transmission interconnection to the national grid, operated by the Saudi Electricity Company. 3 - Examining Life Cycle Environmental Impacts Of Energy Storage For Power System Reserves Jeremiah Johnson, University of Michigan, Ann Arbor, MI, United States, jxjohns@umich.edu, Yashen Lin, Noah Mitchell-Ward, Johanna Mathieu Due to their speed of response and accuracy, energy storage systems may be a preferable alternative to conventional generation in providing power system reserves. We calculate the environmental impacts using lithium ion batteries for this ancillary service application using a life cycle assessment (LCA) framework, while solving an optimal power flow (OPF) problem under a series of grid configurations. Through this OPF-LCA integration, we demonstrate that (1) the impacts of materials and manufacturing are typically far smaller than use phase impacts and (2) there are many system configurations that yield a net increase in life cycle emissions when using energy storage for power system reserves.

New Product Development Invited: New Product Development Invited Session Chair: Jeremy Kovach, TCU, Fort Worth, TX, 76109, United States, j.j.kovach@tcu.edu 1 - An Economic Model Of Knowledge Outsourcing Jaeseok Lee, Georgia Institute of Technology, 710 Peachtree St. NE, Apt. 312, Atlanta, GA, 30308, United States, jaeseok.lee@scheller.gatech.edu, Cheryl Gaimon, Karthik Ramachandran We introduce a game-theoretic model of knowledge outsourcing. We study how the interaction between a knowledge buyer and supplier is affected by two distinctive aspects of knowledge outsourcing: absorptive capacity and the ability to leverage prior knowledge. We also investigate how uncertainty and information asymmetry influence the equilibrium outcomes. 2 - Effect Of Incentive Design On Location Decision Of Collaborative Product Development Teams Sara Rezaee Vessal, HEC Paris, sara.rezaee-vessal@hec.edu Svenja C Sommer To successfully compete on an international scale, multinationals increasingly turn towards globally dispersed product development teams, both to draw on a diverse set of expertise and to access moreaccurate local market knowledge. However, dispersion also creates additional challenges for collaboration, which can have negative effects on project performance. In this study, we compare dispersed and co-located teams and address the question how to incentivise them. We show that despite the current trend among firms, geographically dispersed teams are not always the optimal structure, especially when collaboration is in the form of information sharing. 3 - Optimal Price And Customization Of A Conspicuous Product Cheryl Druehl, George Mason University, cdruehl@gmu.edu, Jesse Bockstedt Technology has reduced the cost of mass customization, while the availability of design tools has allowed users to easily customize products. The mass customization of conspicuous goods, where utility rises from displaying the product to others, allows consumers to create uniqueness and exclusivity. The firm trades-off the cost vs the demand-enhancing impact of customization. Customers trade-off the cost to customize vs a good that better fits their preferences and their desire for exclusivity. The firm considers: How much customization to have at a given additional marginal cost? What should prices be for the standard and custom goods? Is a monopolist better off with both product offerings? 4 - Modeling Product Demand Using Customer Review Data Hallie Cho, INSEAD, hallie.cho@insead.edu, Sameer Hasija, Manuel Sosa Review sites have become a popular destination for consumers seeking product information such as general consensus about a product’s quality or tales of other’s first hand experience with a product. These online reviews suffer from personal bias, which makes them unreliable for potential buyers. However, this collection of personal biases can be of interest to manufacturers since reviews often highlight consumers’ preferences and perceptions of product quality. We explore in what ways these customer reviews are useful for manufacturers using data from the U.S. automobile industry.

MB08 103A-MCC Empirical Research in Operations and Service Innovation Invited: Business Model Innovation Invited Session Chair: Jose A Guajardo, University of California - Berkeley, Berkeley, CA, United States, jguajardo@berkeley.edu

1 - Corporate Responsibility Or Greenwashing? An Empirical Analysis Of The Social Impact Of Corporate Social Responsibility Activities Jun Li, Ross School of Business, University of Michigan, junwli@umich.edu, Andrew Wu Corporate Social Responsibility (CSR) activities have been increasingly criticized by the public as greenwashing as they fail to deliver the intended social impacts. While most existing research on CSR focus on its link to profitability, little research studies the social impact of CSR. In this paper, we leverage a large-scale dataset collected during the last 9 years to examine the social impact of CSR

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