Informs Annual Meeting 2017

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INFORMS Houston – 2017

2 - Resiliency: How Perception Informs Action Michelle Seref, Virginia Instiitute of Technology, Blacksburg, VA, United States, mmhseref@vt.edu This research uses text mining to analyze how the perception of a community’s resilience stance, as reflected in newspaper accounts of disaster events, affects subsequent actions taken by the community, both businesses and public policy. Preliminary results show a correlation between resilience stance and type of action, as well as resilience stance and type of disaster. 3 - Optimal Allocation of Reserved Inventories in a Supply Network with Demand Surge Liu Fang, Nanyang Technological University, Singapore, Singapore, Liu_Fang@ntu.edu.sg, Pengfei Guo, Yulan Wang We study the optimal pre-positioning of reserved emergency inventories in a supply network that faces random demand surge, with the aim of minimizing the expected total unmet demand. The demand surge follows a time-dependent stochastic process, and the post-surge transshipments of the reserved inventories are scenario-driven uncertain. We characterize the matching processbetween the post-surge delivery of the reserved inventories and the corresponding demand surge process and derive the expected total unmet demand. 4 - Routing for Post-disaster Needs Assessment to Improve Information Accuracy Duygu Pamukcu, Middle East Technical University, Ankara, 06400, Turkey, duygupamukcu@gmail.com, Melih Celik, Burcu Balcik In the aftermath of the disaster, the accuracy of the estimates on disaster effects depends on how much time is spent for statistical sampling to collect information. In this study, we consider the problem of routing needs assessment teams, where there exists an inherent trade-off between information collection and travel time. Mathematical models and solutions approaches are presented to analyze this trade-off and support sample size and site selection decisions. 360C Marketing Contributed Session Chair: Omid Javidbakht, Lehigh University, Bethlehem, PA, United States, omj212@lehigh.edu 1 - When Does Price Matching Mitigate Showrooming Yilong Luo, Illinois Institute of Technology, 565 West Adams Street, Chicago, IL, 60661, United States, yluo4@hawk.iit.edu, Jiong Sun Consumers’ “showrooming” behavior poses a threat to brick-and-mortar stores. In our paper, we study when the price matching policy is effective in mitigating this behavior and enhancing stores’ profits. First, we show that price matching may hurt stores when the mis-match risk is relatively high and only a few consumers are aware of this policy. Second, we show that under some cost conditions, the manufacturer can benefit from price matching and, therefore, has incentives to support this policy without intensifying the downstream market competition. 2 - Tie-in with Downstream Competition Sreya Kolay, Assistant Professor, University of California, Irvine, 8 Vega Court, Irvine, CA, 92617, United States, skolay@uci.edu Sellers often use tie-in contracts, offering a product only as a part of a bundle of two or more products and not by itself. Such contracts have been accused of being used for exclusionary purposes, i.e., a dominant firm in a primary product market can use such contracts to force buyers to purchase a secondary product from it to exclude a more efficient rival in the latter market. This paper examines a dominant firm’s incentives to offer exclusionary tie-in contracts when it sells its products through downstream competing retailers. The profitability of exclusionary tying is shown to be related to two key factors: the ability to commit to prices by the upstream firms, and the nature of downstream competition. 3 - Strategic Choice of Quality for Entrants in the Presence of Anchoring Effect In this study, using a two-stage duopoly model of vertical product differentiation, we investigate how the anchoring effect, where consumers’ perceived quality is affected by a predetermined quality position, influences an entrant’s quality choice when it competes with an incumbent firm. We show the optimal quality choice for the entrant, along with its resulting profitability, with varying degrees of anchoring effect. 4 - The Implications of Market Characteristics for Vertical Strategic Interactions in Supply Chains Shahryar Gheibi, Siena College, The School of Business, Siena College, 515 Loudon Rd, Loudonville, NY, 13204, United States, sgheibi@siena.edu, Eunkyu Lee Our analysis on the relationship between market characteristics and the type of Keita Nire, Keio University, Yokohama, Japan, k.nire1030@gmail.com, Nobuo Matsubayashi MC44

vertical strategic interactions in supply chains fully identifies the linkage, and demonstrates that a single aggregate-level demand property, demand’s decay rate, holds the key. We show the generality of our results and their practicality for managers. Our results indicate that an empirical distribution of consumers’ willingness to pay provides insights into the type of strategic interactions in a decentralized distribution channel. Our findings also lead us to propose some interesting strategic implications of the product type (broadly targeted vs. niche) for price leadership in supply chains. 5 - Information Provision in a Vertical Channel Chenchen Di, UIUC, Champaign, IL, 61820, United States, cdi2@illinois.edu, Yunchuan Liu, Jiong Sun This paper investigates how manufacturers and retailers play different roles in revealing product quality information and facilitating consumers’ learning their appreciation for quality, respectively, when consumers face uncertainties for both. We find that firms’ incentives of information provision may or may not be aligned, and it depends on the flexibility of information provision. Both the retailer and the manufacturer can benefit from flexible information provision. 6 - Coupon Targeting Competition in Privacy Sensitive Market Omid Javidbakht, Lehigh University, 19 Memorial Dr, Room 304, Bethlehem, PA, 18015, United States, omj212@lehigh.edu, Alberto J.Lamadrid, Parv Venkitasubramaniam The problem of coupon targeting competition between two retailers which sell the same product with the same price and marginal cost is studied. The competition is modeled by a set of non-zero sum stochastic games over consumers located on a specific segment of Hoteling line. Equilibrium and optimal stationary policies of retailers on each segment is derived. Moreover, It is demonstrated that a retailer will have lower defensive strategy on the consumers with weak preference on him whilst the rival retailer will have higher offensive strategy on the same consumers as discounting factor increases. 360D WORMS: Managing the Work/Life Balance Sponsored: Women in OR, MS Sponsored Session Chair: Xiajun Amy Pan, University of Florida, Gainesville, FL, 32611-7169, United States, amy.pan@warrington.ufl.edu 1 - Moderator Xiajun Amy Pan, University of Florida, P.O. Box 117169, 364 Stz, Gainesville, FL, 32611-7169, United States, amy.pan@warrington.ufl.edu In this panel session, successful male and female academics will discuss the topic of achieving work/life balance. In particular, they will address questions such as how to manage dual career households, how to balance the constraints of work with the care of kids and elderly parents, how to best organize one’s time and maximize productivity, etc. Bring a male colleague along to attend the session and both of you get a free WORMS coffee mug! 2 - Panelist Haoying Sun, Texas A.& M.University, Mays Business School, Info Department, 320 Wehner Building, College Station, TX, 77843- 4217, United States, hsun@mays.tamu.edu 3 - Panelist Burcu B.Keskin, University of Alabama, 4138 Meretta Lane, Tuscaloosa, AL, 35406, United States, bkeskin@cba.ua.edu 4 - Panelist Kyle D.Cattani, Indiana University, Kelley School of Business, 1309 E.Tenth Street, Bloomington, IN, 47405, United States, kcattani@indiana.edu 5 - Panelist Gokce Esenduran, Ohio State University, 2100 Neil Avenue, 656 Fisher Hall, Columbus, OH, 43210, United States, esenduran_1@fisher.osu.edu 6 - Panelist Karen L.Donohue, University of Minnesota, SCO.Department, 321 19th Street Avenue S, Minneapolis, MN, 55455, United States, donoh008@umn.edu 7 - Panelist Irina Dolinskaya, National Science Foundation, 101 Gracie Park Dr, Herndon, VA, 20170, United States, irina.s.dolinskaya@gmail.com MC45

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