Informs Annual Meeting 2017

MA49

INFORMS Houston – 2017

MA49

3 - Contextually Sensitive Privacy Aware E-commerce Systems Faruk Arslan, University of Houston Clear Lake, Clear Lake, TX, United States, Arslan@UHCL.edu, Radu Vlas The purpose of this research is to develop a contextually sensitive solution, which is aimed to reduce the dependency on e-commerce system users to specify and maintain their respective privacy policies for their personal data. To achieve this, we propose a multi-level model to predict whether a certain personal data category (e.g. financial, medical, tastes, etc.) is deemed by the user as personal (or not). We present the application of this model on financial and medical data categories given that the definition of these two data categories as personal, vary across the countries within our sample. Then, we discuss how this predictive model can be embedded into e-commerce systems. 361A Behavioral Issues in Contracting and Inventory Sponsored: Behavioral Operations Management Sponsored Session Chair: Elena Katok, University of Texas at Dallas, Richardson, TX, 75080, United States, ekatok@utdallas.edu 1 - Project Management under Risk-sharing Contracts We analyze the risk-sharing contract in which the contractors are paid at the end of the project. We show that for a project with parallel tasks, there exist multiple Pareto-ranked equilibria, where all contractors exert the same efforts, and the worst project delay is observed when the contractors play the secure equilibrium. To mitigate this coordination failure, we propose an information feedback policy, and show that the contractors’ efforts in the secure equilibrium increase in the information feedback frequency. To test our theoretical findings, we conduct behavioral experiments, and the result confirms our theoretical findings. 2 - Should Retailers or Suppliers Exercise Effort to Increase Demand? Anna-Lena Sachs, University of Cologne, Albertus-Magnus-Platz, Cologne, 50923, Germany, anna-lena.sachs@uni-koeln.de, Yingshuai Zhao, Ulrich Thonemann Demand promotion activities, such as advertisements, enlarge market size and accordingly increase sales profit. In a supply chain, promotion activities can be exercised by any echelon member. We consider a supply chain which is composed of two members, a supplier and a retailer. We investigate whether the supplier or the retailer should exercise the effort of demand promotion activities. We conduct laboratory experiments and compare supply chain performance for retailers or suppliers exercising effort under a Stackelberg game framework or a negotiation framework. 3 - Negotiating Transshipments Prices for Improving Supply Chain Coordination Sebastian Villa Betancur, University of Los Andes, Bogotá, Colombia, s.villab@uniandes.edu.co, Elena Katok We use a simplified model of a single-supplier two-retailer supply chain to experimentally understand how retailers simultaneously set transshipment prices and order quantities. We study how these two decisions deviate from the theoretical channel-coordinating benchmarks. Our experiment manipulates two factors: profitability and sequence of decisions. Results show how average order quantities with transshipment are between optimal orders and mean demand (pull-to-center behavior). In addition, participants ignore the critical ratio when they negotiate transshipment prices. Finally, we show how the sequence of decision may affect the probability of agreement between both retailers. 4 - What Can We Learn from Brain Imaging Newsvendors? Kay-Yut Chen, University of Texas at Arlington, Arkington, TX, United States, kychen@uta.edu, Sridhar P.Nerur, Wendy Casper, Hanli Liu The current literature on newsvendor behavior relies on “guessing” the underlying cognitive and/or psychological mechanisms from observations, without any direct physical evidence. Functional near infrared spectroscopy (fNIRS) allows researchers to examine brain functions by measuring hemodynamic responses associated with neural activities. We show that newsvendor performances are correlated with neural activations in an area (Brodmann area 43) that has been associated with cognitive effort. In addition, we find negative correlation between neural activations and past profits, which is consistent with satisficing behaviors expected of boundedly rational decision- makers. MA48 Sina Shokoohyar, The University of Texas at Dallas, 800 W. Campbell Rd SM.30, Richardson, TX, 75080, United States, sxs137430@utdallas.edu, Elena Katok, Anyan Qi

361B Behavioral Topics in Facilitated Modelling Invited: InvitedBehavioral Aspects of OR Invited Session

Chair: Vincent de Gooyert, PhD, Institute for Management Research, P.O. Box 9108, 6500 HK, Nijmegen, Netherlands, v.gooyert@fm.ru.nl 1 - Behavioral Factors Affecting Facilitated Modelling of Strategic Issues Martin Kunc, University of Warwick, WBS.Social Studies Building, Office E1.07, Coventry, CV4 7AL, United Kingdom, martin.kunc@wbs.ac.uk, Kenneth Huh This study reports in-depth research into the use of resource mapping, within a group based setting, a tool to identify an organization’s strategic resources. Specifically, this paper explores the behavioral factors affecting the group dynamic processes through a quantitative and qualitative analysis of different groups’ processes. The research identified a number of variables influencing group dynamics: deliberateness, cognitive overload, and cognitive and affective conflicts. 2 - Connecting Community-Based System Dynamics with Collective Impact Donald R. Greer, Principal, Greer Black Company, P.O. Box 3607, Bozeman, MT, 59772-3607, United States, drgreer@greerblackcompany.com Donald R. Greer, Principal, Rapid City Collective Impact, 529 Kansas City Street, Suite 207, Rapid City, SD, 57701, United States, drgreer@greerblackcompany.com, Laura Black, Albert Linderman Collective impact projects seek to improve a region’s quality of life through ongoing collaborations across nonprofit, private, governmental and social-service organizations. This paper describes the roles a causal loop diagram played as a shared visual in anchoring, focusing, and connecting nine community work- streams formed during the Rapid City Collective Impact initiative. We propose that causal representations act as effective project-structuring tools in non- traditional projects characterized by ambitious but under-specified outcomes, emergent processes for accomplishing outcomes, diverse resources, and volitional engagement of participants rather than lines of authority. 3 - A Dynamic Theory of the Effect of Facilitated Modeling on Self-efficacy Vincent de Gooyert, Institute for Management Research, P.O. Box 9108, Nijmegen, 6500 HK, Netherlands, v.degooyert@fm.ru.nl Previous studies report mixed findings regarding the effect of facilitated modeling (FM) on proximal and distal outcomes, and the responsible mechanisms are not fully known. We focus on the effect of FM on self-efficacy and propose a dual pathway theory. On the one hand, FM can increase self-efficacy when the intervention increases the participant’s knowledge about solutions for the problem at hand. On the other hand, FM can decrease self-efficacy when the intervention reveals that the problem is much more complex than initially thought. If multiple FM workshops are held, we expect that over time, firstly the negative pathway will be dominant, and secondly the positive. 4 - Behavioral Analytics: Beginnings of a Body of Work Martin Kunc, University of Warwick, WBS.Social Studies Building, Office E1.07, Coventry, CV4 7AL, United Kingdom, martin.kunc@wbs.ac.uk, Michael Mortenson Following the growing interest in analytics and the rise of behavioral approaches in analytical fields (behavioral economics, behavioral OR), this research investigates the development of behavioral analytics, a field at the intersection of these trends. The paper identifies two areas: upstream behavioral analytics, where behavioral patterns act as the stimulus and subject of analytics; and downstream behavioral analytics, where approaches such as visualization are used to give analytics and data science greater influence on the behavior of decision makers. Using a computational literature review, these areas are analysed and compared, and directions for future research are offered.

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