Informs Annual Meeting Phoenix 2018

INFORMS Phoenix – 2018

TA52

integer programming model is constructed in accordance with the specific problem structure. Then a semi-definite programming approach is implemented to produce a lower bound via the semi-definite relaxation of each sub-problem. Furthermore, a branch and bound based method and a local search strategy are applied separately to locate the integer solution of each sub-problem. 4 - Approximation Algorithms for Stochastic Scheduling Problems with Few Different Types of Jobs Lin Chen, University of Houston, 4800 Calhoun Road, Houston, TX, 77004, United States, Lei Xu, Weidong Shi We consider the classical stochastic identical machine scheduling problem with the objective of minimizing weighted completion time. We show that there exists a quasi-polynomial time approximation scheme if there are a logarithmic number of different kinds of jobs. n TA52 North Bldg 231C Joint Session SMA/Practice Curated: Social Media Analytics Methods, Tools and Platforms Emerging Topic: Social Media Analytics Emerging Topic Session Chair: Tung Cu, Bloomsburg University of Pennsylvania, 400 E. 2nd Street, Bloomsburg, PA, 17815, United States 1 - Does Emotional Arousal Boost or Discount Review Valence Impact? The Role of Purchase Stage Anh Dang, Northern Kentucky University, Haile/US Bank College of Business, Highland Heights, KY, 41076, United States, Yuping Liu-Thompkins Conflicting findings exist regarding the impact of review valence on consumers’ decisions. The present paper aims to reconcile these findings by examining emotional arousal expressed in review texts as a moderator of review valence impact. Through two experiments and one field study involving clickstream and purchase data of a major UK online retailer, this paper shows that emotional arousal plays two opposing roles depending on which decision stage the consumer is at. During the search stage, it prevents consumers from relying on valence. Meanwhile, when consumers are about to make their purchase decision, negativity bias causes consumers to reject products with negatively high arousal reviews. 2 - Social Media Network Analytics: Methods, Tools and Platforms Tung Cu, Bloomsburg University of Pennsylvania, 932 Country Club Dr., Bloomsburg, PA, 17815, United States Social networking media is built on the ideological and technological foundations of web and mobile, and that allow the creation and exchange of user generated content. Research in social media analytics focuses on innovative methods and practices of measuring, analyzing and interpreting user-generated content from a variety of online social media platforms, websites, and blogs to uncover hidden patterns and correlations to answer questions pertaining to organizational, educational, social as well as political issues. This paper presents a literature review in both theoretical and empirical variety of social network analytics methods, tools and platforms in different contexts. 3 - Social Analytics Governance: A Literate Review of Practices Tung Cu, Bloomsburg University of Pennsylvania, 932 Country Club Dr., Bloomsburg, PA, 17815, United States, Loreen Powell, Ken Hall, Kuo- Hao Lee, Hayden Wimmer Over the last ten years, the number of businesses harnessing structured, semi- structured or unstructured data have exploded. Today, many businesses are quick to view social analytic data as evidence or arguments. Oftentimes, the evidence and arguments leads to faulty decisions and lost profit because their data are not properly managed and governed. Thus, a business’ ability to deliver accurate analytics is essential to be built on the capabilities of its data and technology governance and practices. Given the increased importance in data governance, this presentation presents a literature review and highlights areas for future research.

the initial procurement mechanism. We show that first-price auctions may perform poorly in this context as all cost-types may pool on high bids to conceal relevant information for the renegotiation. Second-price auctions in such a setting should retain its efficient equilibrium as the buyer merely learns that the cost of the winning supplier is lower than some threshold. Moreover we derive the optimal mechanism. 2 - First-price Auction Design with Loss Averse Bidders Nicolas Fugger, Centre for European Economic Research (ZEW), L7, 1, Mannheim, 68161, Germany, Philippe Gillen, Tobias Riehm Loss aversion describes that subjects evaluate outcomes relative to reference points and suffer more from negative deviations (losses) than they benefit from positive deviations (gains) from reference points. As a consequence, the outcome equivalence of first-price auction formats breaks down. We show that an auction designer who faces loss averse bidders can increase her profit above that attainable with standard first-price auctions by implementing a multi-stage first- price auction which consists of a qualification stage and a final. 3 - Supplier Scorecards in Competitive Sourcing Elena Katok, University of Texas at Dallas, 800 W. Campbell Rd., Jindal School of Management (SM30), Richardson, TX, 75080, United States, Zhixi Wan, Sina Shokoohyar In procurement interactions, the relationship between the buyer and the seller starts after the sourcing decision has been made. In this study we consider ways to design a scorecard to best incentivize the suppliers. 4 - A Theoretical and Experimental Study of Open-bid Auctions Under Post-qualification Screening Wen Zhang, University of Texas at Dallas, 800 W. Campbell Road, Richardson, TX, 75080, United States, Elena Katok, Qi Chen, Zhixi Wan We study a procurement setting in which one qualified supplier (the incumbent) and multiple unqualified suppliers (the entrants) compete in an open-bid auction under post-qualification. We find that the incumbent follows a bid-down-to thresholds strategy in which the incumbent should stay in the auction until the auction price reaches a threshold. Our analysis also shows that after the incumbent drops out, all entrants will follow a similar strategy, but one entrant’s thresholds can only be calculated sequentially after reviewing the last drop-out bids. We test our analytical results in the laboratory with human subjects and explain mismatches between experimental observations and theories. n TA54 North Bldg 232B Behavioral Research on Sustainability and Environmental Operations Sponsored: Behavioral Operations Management Sponsored Session Chair: Enno Siemsen, University of Wisconsin-Madison, Madison, WI, 53706, United States Co-Chair: Mahdi Mahmoudzadeh, Georgia Institute of Technology, Atlanta, 30308, Georgia 1 - Reliably Responsible: Structuring Supply Chains for Socially- responsible Behavior Mahdi Mahmoudzadeh, Georgia Institute of Technology, Scheller College of Business, 800 West Peachtree Street NW, Atlanta, 30308, Georgia, Enno Siemsen Social/environmental benefits of responsible sourcing in supply chains is well discussed in the literature and among practitioners. We extend the classical model of responsible sourcing with a behavioral decision-making process (BDM) for the manufacturer that sources from responsible and non-responsible suppliers. The BDM resolves some of inconsistencies in the classical model’s predictions that limit providing straightforward recommendations. We validate our proposed BDM, against the classical decision-making, through incentivized experiments. The primary advantage of BDM is realized by structuring supply chains for different types of socially-responsible behavior in the market. 2 - How Does Precision Affect the Adoption of Energy Efficiency Practices? - Evidence from the Field and Laboratory Data Suresh Muthulingam, The Pennsylvania State University, Smeal College of Business, 460 Business Building, University Park, PA, 16802, United States, Saurabh Bansal We investigate whether precision affects the adoption or non-adoption of energy efficiency practices. Specifically, we examine if the implementation of energy efficiency practices depends on whether the costs and savings associated with such practices are presented as precise (e.g., $20,431) or round (e.g., $20,400) numbers. Our empirical analysis and experimental results show that adoption rates are higher for those recommendations that have precise costs and precise savings. Additionally, the experiments demonstrate that such recommendations induce higher credibility with decision makers.

n TA53 North Bldg 232A Procurement Design Sponsored: Auction and Marketing Design Sponsored Session Chair: Vitali Gretschko 1 - Sequential Procurement without Commitment

Vitali Gretschko, Center for European Economic Research, 68034 Mannheim, Mannheim, Germany, Nicolas Fugger, Martin Pollrich Renegotiation of contracts is anticipated by the suppliers and in turn influences

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