Informs Annual Meeting Phoenix 2018

INFORMS Phoenix – 2018

MD17

2 - Consumer Preferences and System Design for Pooled Transportation Kashish Arora, INSEAD, Fontaniebleau, France, Fanyin Zheng, Karan Girotra In this study, we look at the drivers of the choice betweenon-demand cabs and a pre-determined and scheduled shuttle service. We use these to estimate the “inconvenience costs associated with shuttle platforms. Specifically, we estimate the inconveniencecosts associated with walking to the shuttle, waiting for its arrival and traveling the extra distance on the shuttle .Secondly, we use the sensitivity estimates to design policy counterfactuals for determiningthe optimal size and frequency of the shuttle service and to suggest new routes for expansion 3 - Impact of the Mobile Channel on Sales Concentration Fangyun Tan, Southern Methodist University, 6212 Bishop Blvd, Dallas, TX, 75275, United States, Nitish Jain This study employs data from a large online apparel retailer, which operates both mobile and PC channels, to compare the causal effects of these two online channels on sales concentration, in terms of the share of popular products. We use a difference-in-differences estimation strategy that leverages a quasi- experiment stemming from the retailer’s decision to discontinue its PC sales channel. We find that the mobile channel increases the share of popular products purchased by about 5% as compared with the PC channel. Furthermore, we find evidence which corroborates the role of a search cost led mechanism in driving the difference between the two channels’ sales concentration level. 4 - Tax-induced Inequalities in the Sharing Economy: Evidence from Airbnb Yao Cui, Cornell University, 401N Sage Hall, Ithaca, NY, 14853, United States, Andrew M. Davis In this paper, we investigate the impact of occupancy tax on Airbnb listings. n MD19 North Bldg 128B Information and Networks Sponsored: Revenue Management & Pricing Sponsored Session Chair: Kimon Drakopoulos, University of Southern California, Los Angeles, CA, 90066, United States 1 - Platforms and Bloggers: Implications on Polarization and Learning Kimon Drakopoulos, University of Southern California, Los Angeles, CA, 90066, United States, Gad Allon, Vahideh Manshadi In this paper we explore the implications of platform intervention and malicious bloggers on polarization and learning results. 2 - Network Interactions and Social Value of Information Gowtham Tangirala, Columbia University, 3022 Broadway, 4th Floor West, New York, NY, 10027, United States, Alireza Tahbaz-Salehi We study decisions made by agents in a network with heterogeneous externalities under incomplete information. We consider an economy with one unknown fundamental and finitely many agents with quadratic payoffs and private, correlated information about the fundamental. We study how equilibrium welfare varies with commonality and precision of information. We find that it is possible for social welfare to exhibit a non-monotonic behavior with respect to commonality in efficient networks. We also find that under complementary (substitution) network effects, a more diffused (less diffused) network exhibits a higher social welfare. 3 - Tampering with Information Odilon Camara, USC, Los Angeles, CA, United States, Ricardo Alonso We study a game between a sender and a receiver, in which the sender can tamper with the information she provides to the receiver (falsify the results of an experiment). The receiver has access to some auditing technology to uncover tampering. We characterize the receiver’s optimal auditing technology, taking into account how auditing affects the sender’s equilibrium choice of information provision and tampering.

n MD17 North Bldg 127C Global Supply Chain Management Sponsored: Manufacturing & Service Oper Mgmt/Supply Chain Sponsored Session Chair: Lauren Xiaoyuan Lu, University of North Carolina at Chapel Hill - Kenan Flagler, Chapel Hill, NC, 27599, United States 1 - Optimizing Local Content Requirements under Technology Gaps Lauren Xiaoyuan Lu, University of North Carolina at Chapel Hill - Kenan Flagler, Kenan-Flagler Business School, CB #3490, Mccoll Building 4701, Chapel Hill, NC, 27599, United States, Shiliang Cui We study how the government of a developing country optimizes its Local Content Requirement (LCR) policy to maximize social welfare in a setting where foreign OEMs produce and sell multi-component products in the developing country. Due to technology gaps between local and global suppliers, local sourcing of components is more costly than global sourcing. 2 - Dual Sourcing Inventory Management Over the Product Life Cycle Jan A. Van Mieghem, Northwestern University, Kellogg School of Mgmt, Evanston, IL, 60208-2009, United States, Jiankun Sun, Jason Acimovic, Douglas Thomas We investigate dual sourcing inventory management policies, including the capped dual index policy, and their applications to the product life cycle. 3 - Cover-up of Vehicle Defects: The Role of Regulator Investigation Announcement Woonam Hwang, HEC Paris, Jouy-en-Josas, 78350, France, Soo-Haeng Cho, Victor DeMiguel Automakers such as Toyota and GM have been recently caught by the U.S. regulator deliberately hiding product defects in an attempt to avoid massive recalls. Interestingly, regulators in the U.S. and U.K. employ different policies in informing consumers about potential defects. To understand how the different announcement policies may affect cover-up decisions of automakers, we model the strategic interaction between a manufacturer and a regulator, and study whether and when the manufacturer has an incentive to cover up a potential defect. Based on our findings, we make four policy recommendations to help mitigate manufacturers’ cover-ups. 4 - Sourcing under the Supplier-auditor Collusion Risk Shiqing Yao, Monash University, Melbourne, Australia, Li Chen, Kaijie Zhu Global brands are increasingly relying on third-party auditor to screen out low- quality suppliers. However, an unethical auditor may collude with a low-quality supplier to produce a false report. In this study, we investigate the buyer’s equilibrium strategy in setting quality requirement under the risk of supplier- auditor collusion.

n MD18 North Bldg 128A Joint Session BMI/Practice Curated: Empirical

Research in Online Marketplaces Emerging Topic: Business Model Innovation Emerging Topic Session

Chair: Yao Cui, Cornell University, Ithaca, NY, 14853, United States 1 - Optimizing Services in Retail Networks using High-dimensional Panel Data Amandeep Singh, The Wharton School, 500 Jon M. Huntsman Hall, 3730 Walnut St., Philadelphia, PA, 19104, United States, Gad Allon, Ken Moon We study how retail stores’ multi-dimensioned service levels affect consumers’ buying behavior in a spatial setting. To this end, we propose the Double Block- Lasso BLP estimator, which combines the double selection procedure introduced in Belloni, Chernozhukov, and Hansen (2014), with demand estimation methods set forth in Berry, Levinsohn and Pakes (1995). Under mild assumptions of structural stability and sparsity, we obtain consistent estimates of the influences that retails stores exert across various spatial markets. Using the estimated influence structure, we highlight the service quality interventions promising greatest joint impact on consumers’ buying patterns.

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