Informs Annual Meeting 2017

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INFORMS Houston – 2017

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3 - Innovation, Innovation Spillover and Economic Growth: Evidence from China Bob Liao, Peking University, Beijing, China, bobliaobo@gmail.com, Fei Ren This paper specifically investigates the innovation spillover phenomenon, which refers to the inter-regional mutual influence through innovation investment. Based on conventional spatial econometric model, our research verifies the existence of innovation spillover effect in the context of China’s institution. Further, we extend the classical Cobb-Douglas productivity function and figure out the economic consequence from innovation spillover. As suggested by our empirical result, we can firmly conclude that a region’s innovation investment can stimulate others’ innovation input but innovation spillover plays a significant negative role in the economic growth. 361A Behavioral Aspects of Managing Innovation Sponsored: Behavioral Operations Management Sponsored Session Chair: Stephen Leider, University of Michigan, Ann Arbor, MI, 48109, United States, leider@umich.edu Co-Chair: Evgeny Kagan, Ann Arbor, MI, 48103, United States, ekagan@umich.edu 1 - Designing Incentives in Startup Teams: Form and Timing of Equity Contract Evgeny Kagan, University of Michigan, 701 Tappan Ave, Ross School of Business, Office R5425, Ann Arbor, MI, 48103, United States, ekagan@umich.edu, Stephen Leider, William S.Lovejoy The conventional logic in the entrepreneurial press is that equal division of startup equity encourages free riding among the founders. Our experimental results confirm the link between equal splits and depressed effort, but suggest a different causal sequence relative to the conventional wisdom. Rather than the contract form being the primitive and the behavior the derived consequence, our results suggest the reverse. The differences in contract performance are driven primarily by the sorting of high contributors into non-equal contracts and of low contributors into equal contracts. However, delaying the contracting mitigates SD48 Vish Krishnan, University of California-San Diego, Rady School of Management MC0553, Otterson Hall, La Jolla, CA, 92093-0553, United States, krishnan@alum.mit.edu, Lakshminarayana Nittala, Sanjiv Erat The process of Innovation often takes the form of problem solving and requires creative insights for achieving success. In an experimental setting we use tasks that are representative of such problems and study the role of institutional design on the creative output and the underlying search process. 3 - Leaps in Innovation Joel Wooten, University of South Carolina, 1014 Greene St., Columbia, SC, 29208, United States, joel.wooten@moore.sc.edu Search over a landscape of possibilities is central to innovation contest solution generation. Using 25,898 distinct attempts at innovation for a set of Kaggle contests, we look at how agents respond to both incremental and discontinuous progress. 4 - Motivating Innovation: the Effect of Loss Aversion on the Willingness to Persist Yaroslav Rosokha, Purdue University, 403 W. State Street, Room 410, West Lafayette, IN, 47907, United States, yaroslav.rosokha@gmail.com, Kenneth Younge We investigate the willingness of individuals to persist at exploration in the face of failure. Prior research suggests that a “tolerance for failure” may motivate individuals to select more exploratory courses of action. Little is known, however, about how individuals persist at exploration when confronted by prolonged periods of negative feedback. To examine this question, we design a two- dimensional maze game to capture the essential trade-offs between exploration and exploitation, develop predictions for the game using computational models of reinforcement learning, and run a series of randomized experiments with human subjects in the game. these sorting effects reducing the effort gap between contracts. 2 - Institutional Designand the Creative Process: An Experimental Study

360E Project Management 2 Invited: Project Management and Scheduling Invited Session Chair: Vera Tilson, University of Rochester, Rochester, NY, 14627, United States, Vera.Tilson@simon.rochester.edu 1 - Project Scheduling under the Threat of Disruption Joseph Szmerekovsky, North Dakota State University, NDSU. Dept 2420, P.O. Box 6050, Fargo, ND, 58108-6050, United States, Joseph.Szmerekovsky@ndsu.edu, Prahalad Venkateshan, Peter D. Simonson The problem of scheduling a project under the threat of disruption is studied. Objectives include expected net present value, maximum possible loss at a give time, and minimum possible loss at a given time. Mathematical programming formulations and complexity results are presented. Railcar and roadrunner strategies are investigated. 2 - Markovian Pert Networks: New CTMC and Benchmark Results Stefan Creemers, IESEG School of Management, Rue de la digue 3, Lille, 59000, France, sc@cromso.com Stefan Creemers, KU. Leuven, Leuven, Belgium, sc@cromso.com Markovian PERT networks were first studied by Kulkarni and Adlakha (1986), who use a CTMC to determine the exact distribution of the completion time of a project where activities have exponentially-distributed durations. All existing work on Markovian PERT networks adopts the CTMC of Kulkarni and Adlakha (1986). We define a new CTMC that drastically reduces memory requirements. Our CTMC can be used to develop scheduling procedures for a wide variety of problems. We outperform the current state-of-the-art in optimal project scheduling procedures, and are able to solve instances of the PSPLIB J90 and J120 data sets. 3 - A Mixed-integer Linear Programming Formulation of the RCPSP Based on Explicit Assignment and Sequencing Decisions Norbert Trautmann, University of Bern, FM Quantitative Methoden, Bern, 3012, Switzerland, norbert.trautmann@pqm.unibe.ch, Tom Rihm The resource-constrained project-scheduling problem RCPSP consists in determining start times for a set of precedence-interrelated activities that require time and scarce resources during execution such that the project makespan is minimized. We present a novel MIP formulation of the RCPSP which is based on explicit assignment and sequencing decisions. The computational results indicate that the novel formulation outperforms two state-of-the-art models known from the literature in particular when the resource capacities are very scarce.

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360F E-Business Sponsored: EBusiness Sponsored Session

Chair: Yingda Lu, Rensselaer Polytechnic Institute, Rensselaer Polytechnic Institute, Troy, NY, 12180, United States, luy6@rpi.edu 1 - Informative or Emotional? Examining the Spillover Effect of Online Video Ads

Liang Zhao, Rensselaer Polytechnic Institute, Troy, NY, United States, zhaol11@rpi.edu, Yingda Lu, Chaoqun Deng

In this study we examine the mechanism of spillover among online ads in the context of Youtube.com. We use the Super Bowl videos on YouTube in 2016 and investigate the role of informative and emotional elements in these ads in spillover process. We propose that there are short term as well as long term spillover among online video clips, and informative and emotional elements have different impact on these two types of spillover mechanism. Implications for researchers and managers will be discussed. 2 - Gender Differences in Equity Crowdfunding Mingfeng Lin, University of Arizona, 1130 E. Helen St, Tucson, AZ, 85721, United States, mingfeng@eller.arizona.edu This paper studies gender biases and differences in the context of online equity crowdfunding, using proprietary data from a leading platform.

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