Informs Annual Meeting 2017

TC03

INFORMS Houston – 2017

TC02

3 - An Inexact Bundle Method for Risk-averse Two-stage Stochastic Optimization

310B Decisional Conflicts and Incentives in Healthcare Sponsored: Decision Analysis Sponsored Session Chair: Mehmet U.S. Ayvaci, University of Texas at Dallas, Richardson, TX, 75080-3021, United States, mehmet.ayvaci@utdallas.edu Co-Chair: YeongIn Kim, University of Texas-Dallas, Richardson, TX, 75080, United States, yxk130930@utdallas.edu 1 - Strategic Flexibility in Health Practice Guidelines under Litigation Concerns YeongIn Kim, University of Texas-Dallas, 800 W. Renner Road, We examine the optimal formulation of guidelines in a generic health screening with consideration for the physician’s increased liability risk under ubiquitous health information and information technologies. We find that under the litigation concern, the social planner strategically provides guidelines with flexible recommendations regarding which patients should undergo the test while providing rigid guidelines regarding the physician’s decisions based on test results. Strategic flexibility in guidelines may lead to lower utilization of health care services, depending on the benefit and cost of the test considered. 2 - Clinical Ambiguity and Conflicts of Interest in Interventional Cardiology Decision-making Tinglong Dai, Johns Hopkins University, 100 International Dr, Baltimore, MD, 21202, United States, dai@jhu.edu, Xiaofang Wang, Chao-Wei Hwang Conventional wisdom suggests that more-precise diagnostic testing will help to reduce overtreatment. However, the literature rarely recognizes that the decision about whether to administer these tests is itself endogenous. In this paper, we examine inappropriate usage of percutaneous coronary intervention (PCI) procedures for stable coronary artery disease patients. Advanced intracoronary tests such as fractional flow reserve provide more precise and objective measures of the physiologic severity of coronary stenosis. We model both clinical ambiguity and conflicts of interest in an interventional cardiologist’s decision to administer advanced tests. 3 - Design of Two-tiered Payment Model for Maternity Care Cheng Zhu, McGill University, 701-801 Sherbrooke Est, Montreal, QC, H2L.0B7, Canada, cheng.zhu@mail.mcgill.ca, Beste Kucukyazici The amount of unnecessary C-Sections, which expose proven higher postpartum complications of mothers and newborns as well as heavy economic burden, has been increasing constantly and this growth raises great concerns for the policy makers. This research proposes a two-tiered payment mechanisms to reimburse obstetricians, in order to reduce unnecessary C-sections while retain it for those who need it, resulting in enhanced birth quality with alleviated economic burden for overall health care system. The optimal reimbursement schemes are further verified empirically with large data sets. 310C Environmental Policy and Decision Analysis Invited: Tutorial Invited Session 1 - Environmental Policy and Decision Analysis Max Henrion, Lumina Decision Systems, Inc, Los Gatos, CA, United States, henrion@lumina.com Climate change and other environmental crises create a growing need for analysts who can design and evaluate policies that reconcile environmental and economic sustainability. I’ll explain the practical value of decision analysis, influence diagrams, treating uncertainty, multi-attribute tools, creative option design, and model-driven stakeholder conversations. I’ll illustrate the use of these methods in the successful “rigs to reefs” analysis of how to decommission California’s offshore oil platforms, which achieved policy consensus. Apt 711, Richardson, TX, 75080, United States, yxk130930@utdallas.edu, Mehmet U. Ayvaci, Srinivasan Raghunathan, Turgay Ayer TC03

Ricardo A. Collado, Assistant Professor, Stevens Institute of Technology, 1 Castle Point Terrace, Hoboken, NJ, 07030, United States, ricardo.collado@stevens.edu, Somayeh Moazeni We consider multistage stochastic optimization problems with elements of risk aversion obtained via dynamic coherent risk measures. For these problems we develop inexact and sampled bundle methods that require only a fraction of cut and subgradient generating problems to be solved. We demonstrate our methods with an application to network interdiction. 4 - Optimization of a Portfolio of American Options with Continuous Strikes Dmitry Chernikov, University of Arizona, Tucson, AZ, 85705, United States, dchernikov@email.arizona.edu, Pavlo A. Krokhmal In this work we consider an options portfolio optimization problem where strikes of options are included as continuous control variables. Such a setting can be interesting from the perspective of the asset liability management, the sell side, or from the point of view of a person who has an opportunity to buy and sell an option with any strike they choose. We present different ways to formulate and solve such a problem including MIP and biconvex maximization. In case of biconvex formulation, by employing problem’s special structure we derive an algorithm that is guaranteed to converge to a KKT point. Numerical results are demonstrated. 5 - Dual Approximate Dynamic Programming for Multi-stage Stochastic Unit Commitment Jagdish Ramakrishnan, Data Scientist, Walmart Labs, 1000 National Ave, Unit 214, San Bruno, CA, 94066, United States, jagdish.ram@gmail.com, James Luedtke We study the multi-stage stochastic unit commitment problem in which commitment and generation decisions can be made and adjusted in each time period. We formulate this problem as a Markov decision process, which is “loosely coupled” in the sense that if the demand constraint is relaxed, the problem decomposes into a separate, low-dimensional, Markov decision process for each generator. We demonstrate how the dual approximate dynamic programming method of Barty, Carpentier, and Girardeau (2010) can be applied to obtain bounds and a policy for this problem, and present numerical results. 310A Meet the Editors Sponsored: Decision Analysis Sponsored Session Chair: L Robin Keller, University of California, Irvine, University of California, Irvine, Irvine, CA, 92697-3125, United States, LRKeller@uci.edu 1 - Meet the Editors L.Robin Keller, University of California, Irvine, Paul Merage School of Business, Irvine, CA, 92697-3125, United States, LRKeller@uci.edu Editors at major outlets for Decision Analysis research will discuss their experiences in evaluating decision analysis research, followed by a Q&A session. 2 - Panelist, Editor, Decision Analysis Rakesh Kumar Sarin, University of California-Los Angeles, Anderson School, Suite B519, 110 Westwood Plaza Box 95148, Los Angeles, CA, 90095-1481, United States, rakesh.sarin@anderson.ucla.edu 3 - Panelist, Department Editor for Decision Analysis, Management Science Manel Baucells, University of Virginia, Darden School of Business, 100 Darden Boulevard, Charlottesville, VA, 22903, United States, mbaucells@gmail.com 4 - Panelist, Area Editor for Decision Analysis, Operations Research Kevin F.McCardle, UCLA, Anderson School at UCLA, 110 Westwood Plaza Box 951481, Los Angeles, CA, 90095-1481, United States, kevin.mccardle@anderson.ucla.edu 5 - Panelist, Department Editor for Decision Analysis, IISE Trans. (Oper. Engr. & Anal. focus) Ali E.Abbas, University of Southern California, Center for Interdisciplinary Decisions and Et, Industrial and Systems Engineering and Public, Los Angeles, CA, 90015, United States, aliabbas@usc.edu Tuesday, 12:05 - 1:35PM TC01

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