Informs Annual Meeting 2017

SC24

INFORMS Houston – 2017

SC24

SC25

342F Sharing Economy and Peer-to-Peer Marketplaces Sponsored: Revenue Management & Pricing Sponsored Session Chair: Jose A Guajardo, University of California-Berkeley, Berkeley, CA, 94720-1900, United States, jguajardo@berkeley.edu Co-Chair: Zhe Zhang, Carnegie Mellon University, Pittsburgh, PA, 15213, United States, zhezhang@cmu.edu Co-Chair: Vibhanshu Abhishek, Carnegie Mellon University, Pittsburgh, PA, 19104, United States, vibs@cmu.edu 1 - Dynamic Two-Side Platform Pricing in C2C Online Sharing Ecosystems Peter Angerer, University of Innsbruck, Innsbruck, Austria, peter.angerer@uibk.ac.at, Daniel Provin, Steffen Zimmermann, Barrie R.Nault Sharing platforms facilitate the sharing of goods between lenders and borrowers. Using an analytical model, we found that sharing platforms have to dynamically adjust platform fees to both consumer groups (dynamic two-sided platform pricing) in order to be profit maximizing. However, the impact of dynamic two- sided platform pricing on consumer’s perception of fairness remains unclear. Using a laboratory experiment, we find that fee changes over time have only a moderate effect on perception of fairness while fee differences between lenders and borrowers have a strong negative effect on perception of fairness and intention to share. Thus, sharing platforms need to be aware of those effects on perception of fairness when applying dynamic two-sided platform pricing. 2 - Hitting too Close to Home?: Impact of Airbnb on Hotel Entry Uttara Madurai Ananthakrishnan, Carnegie Mellon University, 3 Bayard Road, Apt B3, Pittsburgh, PA, 15213, United States, umadurai@andrew.cmu.edu Participation in sharing economy has been increasing in the past few years. In this paper, we study how entry of sharing economy firms impacts the entry of incumbent hotels in the context of Airbnb. To understand the impact on entry, we exploit the temporal and geographical variability in Airbnb’s entry into a market and employ a difference-in-differences specification. Further, we build an entry- model to estimate the business stealing effect of Airbnb. Our results indicate that 10% increase in Airbnb properties leads to a decrease in hotel entries of about 0.4%. Based on this, we perform simulations and provide policy recommendations to city governments to plan for an increasing number of Airbnb entrants. 3 - The Tragedy of your Upstairs Neighbors: A common critique of home-sharing platforms is that they enable hosts to impose costs on their neighbors. We consider four potential public policy responses that differ in whether the decision right to host is allocated to: (1) individual tenants, (2) building owners, (3) cities, and (4) a social planner. We find that (2) and (4) are equivalent, with (3) leading to too little hosting, and (1) to too much hosting. The efficiency of (2) depends on building owners being indifferent between allowing and banning home-sharing in their buildings. To assess this “no policy arbitrage’’ prediction, we constructed a dataset of NYC rental apartments listings. Although we do not observe building home-sharing policies, there are several “policy’’ attributes captured in the data, such as whether buildings allow subletting. Consistent with our prediction, we find that policy choices have no detectable effect on rental prices. Despite the attractiveness of the equilibrium of policy (2), tenants must “sort’’ across buildings, potentially at substantial cost. We explore this sorting with an agent-based model, and show how individual preferences and moving costs affect the equilibrium. 4 - The Welfare Effects of Peer Entry in the Accommodations Market: the Case of Airbnb Andrey Fradkin, Massachusetts Institute of Technology, 179 Prospect Street, Cambridge, MA, 02139, United States, Afradkin@gmail.com I will present one of two projects on the effects of peer-to-peer marketplaces on the economy. Either a project about the accommodations industry or a project about the local services industry. These will include analysis of data from digital platforms. When is the Home-Sharing Externality Internalized? Apostolos Filippas, New York University-Stern, New York University-Stern, New York, NY, 10012, United States, apostolosfilippas@gmail.com, John Joseph Horton

350A Managing Information and License in Technology Industries Invited: New Product Development Invited Session Chair: Hyoduk Shin, UC-San Diego, La Jolla, CA, 92093, United States, hdshin@ucsd.edu Co-Chair: Jingqi Wang, jingqi@hku.hk 1 - Perils of Bargaining Power in Biotechnology R&D Licensing Both the fate of a product and future payments to the innovator (licensor) in R&D license agreements depend on go/no go decisions. This presents a tradeoff between enhanced outcomes due to partner expertise and terminations purely due to a partner’s economic concerns even when clinical prospects are good. We find support for the argument that a larger deal value creates a higher hurdle to clear, thereby increasing the likelihood of a termination. Further investigation reveals that this is due to endogeneity: Underlying drivers of deal value determine whether its effect is positive or negative. 2 - Managing Technology and Licensing in Supply Chains Jingqi Wang, The University of Hong Kong, Room 806, K.K. Leung Building, The University of Hong Kong, Hong Kong, jingqi@hku.hk We study how a supplier should manage the technology and license in a supply chain with competing manufacturers. Should the supplier implement cross- licensing policy? Our research shows that it depends. We also investigate the impacts of such cross-licensing policies on manufacturers, and consumers. 3 - Information Exchange in Parallel Search Ni Fang, University of Cologne, Cologne, Germany, fang@wiso.uni-koeln.de, Fabian J. Sting How should organizations share and use information in parallel innovation, from an internal and external competitive perspective? Using a framework of co- evolutionary search on a technology landscape, we demonstrate how firms can strike a balance for the fundamental trade-off: the efficiency of channeled search vs. the breadth of autonomous search. 350C Economics of IS and Operations-Marketing?? Interface Invited: Social Media Analytics Invited Session Chair: Soohyun Cho, Rutgers University, Newark, NJ, 07102, United States, scho@business.rutgers.edu 1 - Designing Electronic Markets for Transportation Arim Park, Rutgers University, Newark, NJ, United States, arim.park@rutgers.edu, Yao Zhao There are many trucker strikes since 2002 in Korea which brought significant losses on the nation’s economy. We would like to design a fair and efficient mechanism for an electronic market of transportation services in Korea. To this end, we would first identify preferences for both customers and carriers, then develop a two-sided matching model for transportation services to facilitate transaction between customers and carriers. Our objective is to design efficient and fair market mechanism which can serve as the engine of the electronic market. 2 - Beauty Contest and Fintech Revolution Anurag Garg, Graduate Assistant, University of Florida, Warrington College of Business, Bryan Hall 100. PO Box 117150, Gainesville, FL, 32603, United States, anurag.garg@warrington.ufl.edu, Liangfei Qiu, Subhajyoti Bandyopadhyay Following the insight of Keynes (1936) on beauty contest, we develop a model that formalizes higher order beliefs and speculative trading in financial markets. We look into the effects of higher order beliefs (and precision of private and public information) on price drift, trading volume - price volatility relationship and on social welfare. Niyazi Taneri, National University of Singapore, Singapore, niyazi@nus.edu.sg, Arnoud De Meyer SC27

76

Made with FlippingBook flipbook maker