2016 INFORMS Annual Meeting Program

TD88

INFORMS Nashville – 2016

TD86 GIbson Board Room-Omni Marketing VII Contributed Session

2 - Voting With Behavioral Heterogeneity Youzong Xu, Xi’an Jiaotong-Liverpool University, Wuchan, Suzhou, China, xu.youzong@wustl.edu 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, xu.youzong@wustl.edu, 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 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, m.kremer@fs.de 1 - Goal Setting In Teams: A Real-effort Coordination Experiment 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 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, chen.jin198829@gmail.com 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. Cristina Nistor, Chapman University, One University Drive, Orange, CA, 92866, United States, nistor@chapman.edu, Darcy Fudge Kamal James Fan, Penn State University, State College, PA, 16802, United States, juf187@psu.edu, Joaquin Gomez-Minambres Song-Hee Kim, Marshall School of Business, University of Soouthern California, Los Angeles, CA, United States, songheek@marshall.usc.edu

Chair: Zhouyang Lu, Hohai University, Business School, Hohai Univ, 8 Fochengxilu, Jiangning, Nanjing, 211100, China, lzyseu@hhu.edu.cn 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, cli63@hawk.iit.edu, 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, arian@email.arizona.edu, 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, cuicuichen@fas.harvard.edu, 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, lzyseu@hhu.edu.cn, 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, xu.youzong@wustl.edu 1 - Pricing In A Robust Approach To Electricity Markets Xiaolong Kuang, Lehigh University, 14 Duh Drive, Apt 324, Bethlehem, PA, 18015, United States, xik312@lehigh.edu, 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.

361