Informs Annual Meeting 2017

TC49

INFORMS Houston – 2017

TC49

3 - Platform Preannouncement Strategies: the Strategic Role of Information in Two-sided Markets Competition Rajiv Mukherjee, Southern Methodist University, 11113 New Orleans Dr, Frisco, TX, 75035, United States, rajiv.mukherjee@gmail.com, Ramnath K. Chellappa We use a game theoretic model to study the role of information contained in the firm’s preannouncement strategy before releasing a new version of its platform to a two sided market in a competitive setting. We also explore the impact of Atanu Lahiri, University of Texas at Dallas, University of Texas - JSOM, 800 W. Campbell Rd, #SM33, Richardson, TX, 75080, United States, atanu.lahiri@utdallas.edu, Danish Saifee, Vijay S. Mookerjee We look at the reliability of online reviews of physicians by comparing such reviews with other data sources as well as by examining their ability to predict clinical outcomes. 361A Behavioral Operations: Theory Development and Hypothesis Testing Sponsored: Behavioral Operations Management Sponsored Session Chair: Xiaoyang Long, HKUST University, xlongaa@connect.ust.hk Co-Chair: Javad Nasiry, Hong Kong University of Science and Technology-HKUST, Lee Shau Kee Business Building, Room 4079, Motivated by the recent initiatives to increase the transparency in procurement in both in the public and private sector, we experimentally investigate the impact of different levels of transparency on a procurement game in which the director of an organization delegates purchasing decisions to the employees. We posit that, when purchasing decisions are delegated to agents, increased transparency can affect agents’ actions through peer effects. 2 - Reciprocity in Demand Allocation Games Yinghao Zhang, University of Cincinnati, 614A Carl H. Lindner Hall, 2925 Campus Green Dr., Cincinnati, OH, 45221, United States, zhang5y7@ucmail.uc.edu, Lin Tian, Tianjun Feng We consider a situation with two competing retailers who make inventory decisions. The total market demand is divided proportional to their stocking levels. Experimental results suggest that human subjects’ decisions systematically deviate from the Nash Equilibrium. We use theory of reciprocity to explain this off-equilibrium behavior. 3 - A Data-driven Approach for Promotions and Rewards Programs Rim Hariss, Massachusetts Institute of Technology, Operations Research Center, 1 Amherst Street, Cambridge, MA, 02142, United States, rhariss@mit.edu, Georgia Perakis, Yanchong Zheng Consumer-facing companies often adopt promotions and loyalty/rewards programs to attract customer demand and keep retention. In this work, we investigate the impact of promotions and rewards programs on customer choices and behaviors, develop a data-driven framework to accurately and dynamically predict market demands, then develop a prescriptive model for promotions and loyalty programs, such as advising on frequency and design of such programs. 4 - Designing Seat Belts for Boundely Rational Contract Designers. A Choice Set Reduction Experiment. Valery Pavlov, Senior Lecturer, University of Auckland Business School, University of Auckland, Private Bag 92019, Auckland, 1142, New Zealand, v.pavlov@auckland.ac.nz, Bingkun Zhu Supply chain contracting experiments commonly find that retailers often reject suppliers’ “take-it-or-leave-it” offers. Dealing with rejections, suppliers face a cognitively demanding task of designing contracts that optimally trade off their profit and the probability of rejection. As a result of the problem complexity, suppliers’ offers exhibit a substantial degree of bounded rationality. In our laboratory experiment, we test predictions of random choice models that eliminating suboptimal contracts from the supplier choice set improves the performance of a two-part tariff contractual form. installed base, switching and multi-homing on such strategies. 4 - On the Reliability of Online Reviews of Physicians TC48 Hong Kong, 00000, Hong Kong, nasiry@ust.hk 1 - Transparency in Procurement Mechanisms Ignacio Rios, Stanford University, 63 Abrams Ct., Apt. 519, Stanford, CA, 94305, United States, iriosu@stanford.edu, Ruth Beer, Daniela Saban

361B Practice/eBusiness III Contributed Session Chair: Xing Liu, Huazhong University of Science and Technology, Luoyu Road 1037, Wuhan, China, Wuhan, 1, China, 1393096617@qq.com 1 - Exploring the Relationship Between Offline Locations and Online Rating Behavior Dominik Gutt, Paderborn University, Warburger Str 100, Paderborn, 33098, Germany, dominik.gutt@uni-paderborn.de, Juergen Neumann, Dennis Kundisch This study examines the relationship between rating outside of a customer’s home area and the magnitude of online ratings. We employ a data-driven identification of a customer’s geographic home area and use variation in this variable to identify the consequences for the magnitude of online ratings. We find that customers who give a rating while traveling give, on average, higher ratings than locals. However, this relationship is moderated by the posting time of a review relative to consumption, with more negative ratings posted by travelers during or shortly after consumption. These results come with substantial implications for a business’s average rating and for customer decision making. 2 - The Importance of Multisensory Feedback and Sensory As mouse-driven desktops give way to touchscreen and mid-air gesture-based devices, inquiries into the design and use of new interaction technologies deserve further investigation. This study explores how multisensory feedback and sensory congruence provided by interaction technologies shape virtual product experience. Drawing on literature on virtual product experience and sensory- based interaction, we propose that visual feedback and haptic feedback would enhance product tangibility and thus reduce consumers’ shopping risk perceptions. Furthermore, the interaction effect between visual and haptic feedback on product tangibility would be moderated by sensory congruence. 3 - A New Application for Worst Case Resistance Testing Stephen France, Mississippi State University, 324 McCool Hall, 40 Old Main, Mississippi State, MS, 39762, United States, sfrance@business.msstate.edu, Frank Adams, Myles Landers Wave analysis assessments of non-response bias seem inadequate when internet samples can complete data collections in minutes. We adapt an extant procedure - worst-case resistance testing, often used to assess the file-draw problem in meta- analysis - to address the problem. The procedure assesses a study’s non-response bias vulnerability based on the sample size, mean and standard deviation of specific survey item replies. 4 - How Internet Celebrity Attract Our Customers? the Effects of Internet Celebrity E-commerce Attractiveness on Customers’ Repurchase Intention Xing Liu, Huazhong University of Science and Technology, Luoyu Road 1037, Wuhan, China, Wuhan, China, 1393096617@qq.com The success of emerging Internet celebrity e-commerce (ICEC) depends on the repurchase of their customers. Drawing on attractive and identification theories, we examine the role of ICEC attractiveness (in terms of product attractiveness, live streaming attractiveness, and internet celebrity attractiveness) in influencing internet celebrity identification and the influence of such identification on customers’ repurchase intention. The findings of this study contribute to a better understanding how Internet celebrity e-commerce attract and retain repeat customers through their attractiveness. Congruence in Virtual Product Experience Cheng Luo, Tianjin University, Tianjin, China, cheng.luo@tju.edu.cn

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