{"title":"Blessing or curse? Sharing economy and its impact on the community of customers and suppliers","authors":"Shuo Zeng, Yuanjie He","doi":"10.1111/deci.12587","DOIUrl":"10.1111/deci.12587","url":null,"abstract":"<p>Sharing economy offers an alternative to customers with on-demand services and opens up a new way for owners of underutilized resources to generate revenue. However, there is little evidence on whether sharing economy benefits the community of customers and suppliers or not. Our work is motivated by the ongoing stories of conflicts related to the ride sharing platforms (e.g., Uber, Lyft) and the information we collected from industry practitioners. We propose an economic model that describes how a price manipulating ride sharing platform crowdsources and matches supply to demand. Furthermore, our model captures how sharing economy's manipulative power impacts the community of customers and suppliers. Sharing economy platforms allow customers to make purchase decisions after evaluating the search cost, which depends on other customers' purchase decisions and leads to endogenous demand for sharing economy services. A comprehensive theoretical analysis of such models can be extremely challenging due to the endogenous demand. However, we provide such analysis by assuming that the customers evaluate the search cost with the estimated or “exogenous” demand instead of the realized or “endogenous” demand. Moreover, we support our theoretical findings in more realistic settings by performing various numerical analyses. Our results suggest that the financial objective of sharing economy may conflict with the welfare of the affected community, which can be mitigated by government regulations that impose upper bounds on price surges. Our work helps researchers, practitioners, and public policy makers more comprehensively understand the challenges that sharing economy brings and suggests possible regulatory intervention.</p>","PeriodicalId":48256,"journal":{"name":"DECISION SCIENCES","volume":"54 5","pages":"514-534"},"PeriodicalIF":5.5,"publicationDate":"2022-12-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45789993","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Analysis of online rebates and commission formats in a retailer-Stackelberg supply chain with cashback website","authors":"Peng Xu, Tiaojun Xiao","doi":"10.1111/deci.12586","DOIUrl":"10.1111/deci.12586","url":null,"abstract":"<p>Motivated by the fact that many e-tailers offer online rebates through cashback websites to attract more consumers, and wield channel leadership, we construct a retailer-Stackelberg supply chain comprised of one e-tailer, one manufacturer, and one cashback website. Cashback websites have two commission formats: sharing and fixed. We first explore the online rebate strategy of the e-tailer (under the two commission formats); and then study the e-tailer's commission format selection strategy when offering rebates. Our analysis reveals that: (i) the product valuation and fraction of low-end consumers play key roles in shaping the e-tailer's online rebate and commission format selection strategies; (ii) the e-tailer's rebates increase the wholesale price under sharing commission, but decrease it under fixed commission; (iii) the e-tailer's rebates may be a trap for consumers because they may pay a higher retail price after rebates; (iv) under both commissions, the e-tailer's rebates hurt the manufacturer, but could enhance supply chain performance; and (v) when offering rebates, low-end consumers and the manufacturer are better off under sharing commission if its product valuation is sufficiently low, while high-end consumers are better off under fixed commission. Additionally, the e-tailer has a stronger incentive to provide rebates when the manufacturer acts as the leader; temporary rebate promotion may lead to a triple win situation for the manufacturer, e-tailer, and consumers.</p>","PeriodicalId":48256,"journal":{"name":"DECISION SCIENCES","volume":"55 4","pages":"363-380"},"PeriodicalIF":2.8,"publicationDate":"2022-11-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42976865","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Too much information? The use of extraneous information to support decision-making in emergency settings","authors":"Ofir Ben-Assuli, Ofer Arazy, Nanda Kumar, Itamar Shabtai","doi":"10.1111/deci.12585","DOIUrl":"10.1111/deci.12585","url":null,"abstract":"<p>Decision-makers in emergency settings need to employ the breadth of evidence available so as to inform critical judgments, yet the acute time pressure suggests that in some cases only partial information could be employed. Investigating this tension, the current study focuses on the usefulness of extraneous information that arrives from outside the organization and supplements the information that is available through local information systems. Namely, we explore the extent to which the use of Health Information Exchanges (HIEs)—a network that integrates patients’ clinical information across medical organizations and points of care—facilitates diagnosis decisions in hospitals’ emergency departments (EDs). Adopting the lens of cognitive decision-making theory, we advance hypotheses regarding the moderating effects of the tasks’ cognitive requirements (diagnosis complexity) and clinicians’ time availability (ED crowdedness) on the relation between the use of extraneous information (in the form of HIE data) and decision quality (ED revisit rate). Our empirical investigation employs complete field data collected from a network of hospitals, capturing over half-a-million patient ED encounters. The results reveal that, in general, ED clinicians’ use of the HIE improves decision quality, as reflected in <i>reduced</i> patient revisits to the ED. However, when diagnosis complexity is low, this effect is reversed, such that HIE use is associated with increased ED revisit rates. Our discussion highlights the conditions under which extraneous information contributes to better decision-making and calls for a mindful use of interorganizational information exchanges in emergency settings.</p>","PeriodicalId":48256,"journal":{"name":"DECISION SCIENCES","volume":"54 6","pages":"632-650"},"PeriodicalIF":5.5,"publicationDate":"2022-11-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/deci.12585","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49206769","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Jian-Jun Wang, Zongli Dai, Jasmine Chang, Jim (Junmin) Shi, Haiguan Liu
{"title":"Robust surgical scheduling for nonoperating room anesthesia (NORA) under surgical duration uncertainty","authors":"Jian-Jun Wang, Zongli Dai, Jasmine Chang, Jim (Junmin) Shi, Haiguan Liu","doi":"10.1111/deci.12584","DOIUrl":"10.1111/deci.12584","url":null,"abstract":"<p><i>Nonoperating room anesthesia</i> (NORA) refers to the practice and administration of anesthesia or sedation outside the <i>operating room</i> (OR), which has been increasingly implemented in practice. The novelty of NORA is to separate the anesthesia preoperative stage from an OR for the sake of saving OR time and improving its efficiency. In this article, we study the scheduling problem for NORA considering both <i>anesthetic rooms</i> (ARs) and <i>operating rooms</i> (ORs) based on ambiguous information about surgical durations. Our goal is to devise a robust and efficient scheduling mechanism for NORA. To address this problem, we develop a two-stage mixed-integer <i>Robust Optimization</i> (RO) model that minimizes the total costs, including the sum of operating costs of opened ORs and ARs, delay cost of surgeries, and overtime cost of ORs. Decisions include the number of ARs and ORs to open, the allocation of patients to ARs and ORs, the sequence of surgeries, and the planned starting time for each surgery. Accordingly, a heuristic algorithm, so-called <i>column-and-constraint generation</i> (C&CG), is developed that renders a desirable performance. Some salient properties of the problem are also discussed. In addition, by leveraging practical data in conjunction with data reported in the extant research, the computational efficacy of the proposed algorithm is verified under various sets of parameters. Our numerical experiments reveal that (1) the implementation of NORA can reduce the OR overtime cost and the waiting time of patients; (2) our proposed <i>Robust Optimization</i> (RO) model possesses stronger robustness and computational efficiency than the <i>distributionally robust model</i> (DRO); and (3) while considering surgical duration uncertainty, the developed scheduling approach outperforms the corresponding deterministic setting in terms of decreasing the total cost and alleviating the surgery delay. Generally, the proposed approach is more adaptive to take the advantage of the surgical duration uncertainty to enhance its efficacy.</p>","PeriodicalId":48256,"journal":{"name":"DECISION SCIENCES","volume":"55 3","pages":"262-280"},"PeriodicalIF":2.8,"publicationDate":"2022-10-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45597263","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Kim E. van Oorschot, Luk N. Van Wassenhove, Marianne Jahre, Kostas Selviaridis, Harwin de Vries
{"title":"Drug shortages: A systems view of the current state","authors":"Kim E. van Oorschot, Luk N. Van Wassenhove, Marianne Jahre, Kostas Selviaridis, Harwin de Vries","doi":"10.1111/deci.12583","DOIUrl":"10.1111/deci.12583","url":null,"abstract":"<p>The objective of this thought leadership article is to create a systems view of drug shortages based on the perceptions of practitioners and policymakers. We develop a comprehensive framework describing what stakeholders are currently doing when faced with drug shortages and show the outcomes of their actions. In a review of practitioner literature and public reports published from 2010 to 2020, we identify cause-and-effect relationships related to generic drug shortages in six high-income European countries (Belgium, France, the Netherlands, Norway, Sweden, and the UK) in normal times. By combining and connecting data from these different sources, we develop a systems view of the current state. Though several of the associations covered in the systems view are well known, putting them all together and considering their interrelationships is what is offered by this research. Based on this systems view, we derive three basic solution archetypes for drug shortages: (1) let the market handle it; (2) search for alternatives; and (3) bend the rules. The interactions between these archetypes generate causal ambiguity making it harder to understand and solve the problem as the side effects of solutions can be missed. We show how the interaction of archetypes can compromise intended behavior or escalate unintended behavior. However, our systems view allows us to suggest higher-level solution archetypes that overrule such side effects. The basic and higher-order solution archetypes can provide baselines for research and support the development of future interventions.</p>","PeriodicalId":48256,"journal":{"name":"DECISION SCIENCES","volume":"53 6","pages":"969-984"},"PeriodicalIF":5.5,"publicationDate":"2022-10-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/deci.12583","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"87646476","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Curbing the usage of conflict minerals: A supply network perspective","authors":"Han Zhang, Goker Aydin, Hans Sebastian Heese","doi":"10.1111/deci.12580","DOIUrl":"https://doi.org/10.1111/deci.12580","url":null,"abstract":"<p>An important source of funds for the conflict in the Democratic Republic of the Congo is the revenue from mineral mining. NGOs and legislators made efforts to require manufacturers that use “conflict minerals” to learn and disclose their sources. In the mineral supply chain, the critical link between mines and manufacturers is smelters. We study equilibrium sourcing decisions in the supply network consisting of manufacturers and smelters. We show the equilibrium depends on the total demand of “compliance-prone” manufacturers, which would choose to be compliant if the prices of certified and noncertified metals were equal. We identify the conditions for the existence of several types of equilibrium: an all-certified equilibrium where all smelters become certified; an equilibrium where both metal types coexist with no shortage of certified metal; and an equilibrium where both metal types coexist with a shortage of certified metal. In the event that an all-certified equilibrium is out of reach, we identify how the usage of conflict minerals changes as an NGO or a legislative body targets additional manufacturers. Our model does not incorporate deliberate choices by the mines to become verified conflict-free, that may enhance the effect of the penalties in the long run. However, in the short-to-intermediate run, for a given pool of mines that are verified, an implication of our results is that imposing penalties on manufacturers goes only so far: If penalties induce sufficiently many manufacturers to become compliance-prone, certified metal may become so expensive that some compliance-prone manufacturers will not comply.</p>","PeriodicalId":48256,"journal":{"name":"DECISION SCIENCES","volume":"54 5","pages":"535-553"},"PeriodicalIF":5.5,"publicationDate":"2022-07-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/deci.12580","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"50121288","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Kai-Yu Hsieh, Ping Xiao, Noshir Contractor, Li Wang
{"title":"Online community's recognition and continued participation in idea competitions","authors":"Kai-Yu Hsieh, Ping Xiao, Noshir Contractor, Li Wang","doi":"10.1111/deci.12578","DOIUrl":"10.1111/deci.12578","url":null,"abstract":"<p>This study examines the effect of online community's recognition on continued participation in idea competitions, and how personal winning record moderates such an influence. We reason that the motivating role of community recognition might either be reinforced or substituted by personal winning record, depending upon whether relational motives (psychological and social bonding) or individualistic motives (personal benefits, such as status and career enhancement) are the primary behavior driver. Through an event history analysis of data obtained from a platform of creative design contests, we find that although community recognition exerts a positive effect on the rate of continued participation for designers who are yet to win any competitions, this effect increasingly turns negative for designers who have won. Such findings indicate that the motivating role of community recognition might be substituted instead of reinforced by personal winning record, lending support to the individualistic view while rejecting the relational view. Although virtual social spaces represent an important means for modern competition platforms to attract and motivate participants, our study informs practitioners about online community's limitation in retaining “star” participants.</p>","PeriodicalId":48256,"journal":{"name":"DECISION SCIENCES","volume":"55 2","pages":"176-190"},"PeriodicalIF":5.5,"publicationDate":"2022-07-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46813097","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Multiproduct pricing under the multinomial logit model with local network effects","authors":"Mohan Gopalakrishnan, Heng Zhang, Zhiqi Zhang","doi":"10.1111/deci.12579","DOIUrl":"https://doi.org/10.1111/deci.12579","url":null,"abstract":"<p>Motivated by direct interactions with practitioners and real-world data, we study a monopoly firm selling multiple substitute products to customers characterized by their different social network degrees. Under the multinomial logit model framework, we assume that the utility a customer with a larger network degree derives from the seller's products is subject to more impact from her neighbors and describe the customers' choice behavior by a Bayesian Nash game. We show that a unique equilibrium exists as long as these network effects are not too large. Furthermore, we study how the seller should optimally set the prices of the products in this setting. Under the homogeneous product-related parameter assumption, we show that if the seller optimally price-discriminates all customers based on their network degrees, the products' markups are the same for each customer type. Building on this, we characterize the sufficient and necessary condition for the concavity of the pricing problem, and show that when the problem is not concave, we can convert it to a single-dimensional search and solve it efficiently. We provide several further insights about the structure of optimal prices, both theoretically and numerically. Furthermore, we show that we can simultaneously relax the multinomial logit model and homogeneous product-related parameter assumptions and allow customer in- and out-degrees to be arbitrarily distributed while maintaining most of our conclusions robust.</p>","PeriodicalId":48256,"journal":{"name":"DECISION SCIENCES","volume":"54 4","pages":"447-466"},"PeriodicalIF":5.5,"publicationDate":"2022-07-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"50131228","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Service at risk in delivery operations","authors":"Mert Hakan Hekimoğlu, John H. Park, Burak Kazaz","doi":"10.1111/deci.12577","DOIUrl":"10.1111/deci.12577","url":null,"abstract":"<p>This article examines disruption risks at fulfillment centers and develops risk mitigation strategies based on inventory stocking and delivery decisions. It considers a Fortune 150 firm whose delivery operations are designed to fulfill the orders from contracted business customers within the next day. The firm promises its customers that the probability of late deliveries exceeding a certain threshold will be limited. We coin this requirement as the service-at-risk (SaR) constraint. The firm proactively determines the inventory amount to be kept in each fulfillment center. If a disruption occurs, the firm determines the best way to deliver orders from its operational fulfillment centers and vendors under disruption length and demand uncertainty to minimize additional costs and satisfy the SaR constraint. This article makes four main contributions. First, we find a surprising result that total inventory commitment can decrease with risk aversion when there exists a disruption possibility that impacts two nearby facilities together. Using actual data from the motivating firm, the numerical analysis demonstrates that this phenomenon exists in practice. Second, we define a new metric: The Risk Dispersion Index (RDI), which measures the dispersion in risk exposure across fulfillment centers. It leads to a lower and more balanced risk exposure in the firm's delivery operations. Third, we find that a facility may elect to abandon its own customers to serve the customers of a disrupted facility; this behavior becomes more prominent under risk aversion. Fourth, the introduction of demand uncertainty leads to a smaller inventory commitment for a risk-neutral retailer.</p>","PeriodicalId":48256,"journal":{"name":"DECISION SCIENCES","volume":"55 1","pages":"33-56"},"PeriodicalIF":5.5,"publicationDate":"2022-07-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47066711","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Kaitlin D. Wowak, Sean Handley, Ken Kelley, Corey M. Angst
{"title":"Strategic sourcing of multicomponent software systems: The case of electronic medical records","authors":"Kaitlin D. Wowak, Sean Handley, Ken Kelley, Corey M. Angst","doi":"10.1111/deci.12576","DOIUrl":"10.1111/deci.12576","url":null,"abstract":"<p>The significance of information technology (IT) to organizational performance is increasingly acknowledged by senior executives and scholars alike. However, an important aspect that is underdeveloped in the extant literature is whether and how an organization's IT <i>sourcing strategy</i> affects performance. We examine this dimension in the context of hospitals’ sourcing strategy for electronic medical record (EMR) systems. Leveraging the organization-IT alignment principle grounded in contingency theory, we argue that the sourcing strategy chosen by hospitals impacts the quality of patient care rendered and that the nature of this relationship has changed over time. Using data on US hospitals that operated continuously from 2006 to 2013 and employing a multilevel longitudinal modeling framework to analyze change over time, we examine how a key dimension of the sourcing strategy for EMR systems—change in closeness to single-sourcing—impacts conformance quality, a critical measure of hospital performance that assesses how frequently hospitals comply with evidence-based practices. We find that a change closer to single-sourcing is positively associated with conformance quality, but this positive effect is reduced over time, meaning that the benefits realized by hospitals using a single-sourcing approach diminish toward the end of our observation period. As explicated in our discussion of results, findings from our research reveal critical insights about how sourcing decisions impact performance, and how these effects evolve over time due to changes in regulations, technology, and competition.</p>","PeriodicalId":48256,"journal":{"name":"DECISION SCIENCES","volume":"55 3","pages":"227-244"},"PeriodicalIF":2.8,"publicationDate":"2022-06-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47537653","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}