DECISION SCIENCES最新文献

{"title":"Multiproduct pricing under the multinomial logit model with local network effects","authors":"Mohan Gopalakrishnan,&nbsp;Heng Zhang,&nbsp;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,&nbsp;John H. Park,&nbsp;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}

{"title":"Strategic sourcing of multicomponent software systems: The case of electronic medical records","authors":"Kaitlin D. Wowak,&nbsp;Sean Handley,&nbsp;Ken Kelley,&nbsp;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}

{"title":"Converting a drug from off-label to on-label use: Government subsidies and patient welfare","authors":"Wendy Olsder,&nbsp;Tugce Martagan,&nbsp;Christopher S. Tang","doi":"10.1111/deci.12574","DOIUrl":"10.1111/deci.12574","url":null,"abstract":"<p>Most rare diseases have no approved treatments available, and doctors often prescribe existing drugs for “off-label” use in the sense that a drug is prescribed for a medical condition that is different from the original condition approved by regulatory authorities. To develop approved treatments for rare diseases quickly without starting from scratch, governments have introduced different subsidy programs to entice pharmaceutical companies to exert extra efforts to “convert” certain drugs from off-label to “on-label” use. However, the impact of this subsidized conversion strategy on patient welfare remains unclear because both efficacy and price can change once a drug is converted from off-label to on-label use. This paper represents an initial attempt to investigate the effectiveness of different types of government subsidies (e.g., offer subsidies to manufacturers, patients, or both) for improving patient welfare through the drug conversion strategy. We present a three-stage Stackelberg game-theoretic model that captures the interactions among the government, manufacturer, and patients, and determine whether it is optimal to subsidize the manufacturer, patients, or both. We identify requisite (market and subsidy) conditions for a manufacturer to convert a drug from off-label to on-label use. We also determine the optimal extra development effort to convert an off-label drug, and the optimal unit selling price for the on-label drug after conversion. Contrary to the generally held public opinions, our analysis reveals that subsidizing pharmaceutical manufacturers is more effective than subsidizing patients. This result implies that subsidies offered to manufacturers would incentivize higher conversion efforts, and subsequently increase the expected patient welfare. Furthermore, we show that this result continues to hold even when the patients are risk-averse or on-label market size is uncertain. Our numerical analysis on the drugs Aralen, Humira, Revlimid, and Zostex reveals that government subsidies are necessary for enticing conversion from off-label to on-label use.</p>","PeriodicalId":48256,"journal":{"name":"DECISION SCIENCES","volume":"54 6","pages":"579-595"},"PeriodicalIF":5.5,"publicationDate":"2022-06-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/deci.12574","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"138506359","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":"Decision biases in revenue management revisited: Dynamic decision-making under stationary and nonstationary demand","authors":"Catherine Cleophas,&nbsp;Claudia Schüetze","doi":"10.1111/deci.12573","DOIUrl":"10.1111/deci.12573","url":null,"abstract":"<p>State-of-the-art revenue management systems combine forecasting and optimization algorithms with human decision-making. However, only a few existing contributions consider the behavioral aspects of revenue management. To extend the related research, we examine the impact of nonstationary demand and two dynamic decision tasks. We examine human decision-making strategies and biases by implementing a related experimental design in a laboratory study and comparing participant decisions to systematic heuristics. Our results highlight that participants struggle to accommodate a nonstationary willingness to pay. In that, they exhibit a combination of optimism and loss aversion biases. We further find that participants anchor their decisions on customers' willingness to pay. We draw implications and further research opportunities to behaviorally inform the design of symbiotic analytics systems from these results.</p>","PeriodicalId":48256,"journal":{"name":"DECISION SCIENCES","volume":"55 2","pages":"159-175"},"PeriodicalIF":5.5,"publicationDate":"2022-06-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/deci.12573","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48407341","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":"Ordering decisions under supply uncertainty and inventory record inaccuracy: An experimental investigation","authors":"Nienke Hofstra,&nbsp;Eirini Spiliotopoulou,&nbsp;Sander de Leeuw","doi":"10.1111/deci.12564","DOIUrl":"10.1111/deci.12564","url":null,"abstract":"<p>Uncertainty on the supply side is a common issue planners face. How do decision-makers incorporate inventory uncertainty when placing orders? We investigate ordering decisions under two forms of uncertainty regarding total inventory available to satisfy demand: supply uncertainty (SU; unreliability in incoming shipments) and inventory record inaccuracy (IRI; internal inefficiencies leading to a discrepancy between physical and recorded inventories). The experimental results reveal behavioral regularities in ordering decisions under both forms of total inventory uncertainty. We find that subjects overstock in settings with low profit margins, and overstocking is more pronounced under IRI than under SU. This overstocking under low profit margins is similar to observed ordering decisions under demand uncertainty. In these settings, subjects show a stronger shortage aversion under IRI (which is internal uncertainty) than under SU (which is external uncertainty). Furthermore, we find that subjects chase past realizations of supply/on-hand inventory, although the effect depends on the uncertainty type. Although SU and IRI are, in practice, often simultaneously present, their causes are different. By providing insight into the relative effect of the types of uncertainty on the quality of inventory replenishment decisions, this study highlights the importance of reducing SU and IRI for products with low profit margins.</p>","PeriodicalId":48256,"journal":{"name":"DECISION SCIENCES","volume":"55 3","pages":"303-318"},"PeriodicalIF":2.8,"publicationDate":"2022-05-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/deci.12564","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48053959","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":"Inventory control under different forms of uncertainty: Ambiguity and stochastic variability","authors":"Siqi Ma,&nbsp;John Aloysius","doi":"10.1111/deci.12566","DOIUrl":"10.1111/deci.12566","url":null,"abstract":"<p>Inventory decision makers routinely face ambiguity due to the psychological awareness that there is unknown information about salient events that is knowable in principle. Researchers on inventory control behavior in the face of uncertainty have primarily focused on uncertainty due to stochastic variability. However, most decision situations in the naturally occurring world involve both forms of uncertainty—ambiguity and stochastic variability. We report the results of two experiments that partial out the effects of ambiguity and stochastic variability by orthogonal manipulation of these two forms of uncertainty in a newsvendor task. Contrary to established mathematical models of decision making under uncertainty, increased ambiguity results in increased mean absolute percentage error, and a corresponding decrease in profit. We also find a systematic bias toward underordering associated with increased ambiguity, which is over and above the bias associated with increased stochastic variability. We do not see evidence for learning with repeated play, so that the effects of induced ambiguity appear to persist. Finally, based on our findings, we suggest measures that managers can use to ameliorate the effects of ambiguity.</p>","PeriodicalId":48256,"journal":{"name":"DECISION SCIENCES","volume":"55 2","pages":"137-148"},"PeriodicalIF":5.5,"publicationDate":"2022-04-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44106325","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":"To talk or not?: An analysis of firm-initiated social media communication's impact on firm value preservation during a massive disruption across multiple firms and industries","authors":"Ravi Srinivasan,&nbsp;Ashish Kumar Jha,&nbsp;Nishant Kumar Verma","doi":"10.1111/deci.12563","DOIUrl":"https://doi.org/10.1111/deci.12563","url":null,"abstract":"<p>We examine the role of firm-initiated social media communication using Twitter in mitigating the negative impact of large-scale disruptions, such as the Covid-19 pandemic, on the shareholder value of firms. We develop our hypotheses using signaling theory and test them using data collected from Twitter and Bloomberg®. Our data set consists of 121,988 firm-generated tweets from 467 S&amp;P 500 firms collected in March 2020 at the time of the lockdown announcement in the United States. We find that frequent and relevant communication reduces latency and increases the observability of messages, preserving a firm's shareholder value. We also find that a positive outlook and extent of interest from stakeholders results in preserving shareholder value. On average, firms lost about 1.08% of their market value per day (about 9.72% during the 9-day period around the lockdown announcement). Our study contributes to the extant literature in three ways: (1) adds to the literature on disruptions–shareholder value by considering large-scale disruptions such as the Covid-19 pandemic, (2) highlights informational and communication elements of risk management strategy, and (3) adds to the growing body of literature on Twitter by considering firm-generated tweets. The results of our study are of importance to managers as well. For instance, firms tweeted about 57 times per week, and each additional tweet could preserve about $5.85 million of a firm's market valuation, on average. Also, it is not enough that the firms took appropriate actions during a large-scale disruption; they also need to communicate their actions and its implications to their stakeholders effectively. These results can help managers devise their Twitter communication strategy during large-scale disruptions.</p>","PeriodicalId":48256,"journal":{"name":"DECISION SCIENCES","volume":"54 4","pages":"410-431"},"PeriodicalIF":5.5,"publicationDate":"2022-04-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"50143164","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":"Supply chain coordination with information design","authors":"Justin Jia,&nbsp;Paolo Letizia,&nbsp;Sean P. Willems","doi":"10.1111/deci.12562","DOIUrl":"10.1111/deci.12562","url":null,"abstract":"<p>We consider the coordination of a supplier–retailer supply chain where, in addition to classical contract considerations, a supplier decides the adoption of an information structure (IS) for the supply chain, with a higher-quality IS allowing the supply chain parties to obtain a more accurate demand forecast. Because a wholesale price contract cannot coordinate the supply chain due to misaligned incentives of supply chain parties, we explore what common coordinating contracts in the classical coordination literature can continue coordinating the supply chain with the IS adoption. Interestingly, our analysis appears to reveal the power of simplicity: some simple classical coordinating contracts (e.g., the buy-back and revenue-sharing contracts), though not designed with the IS consideration, still coordinate the supply chain, whereas other more complicated classical contracts (e.g., the quantity flexibility and sales rebate contracts) fail to do so. We derive a general condition for supply chain coordination and show that any contract with a newsvendor-like transfer payment can coordinate the supply chain.</p>","PeriodicalId":48256,"journal":{"name":"DECISION SCIENCES","volume":"55 2","pages":"149-158"},"PeriodicalIF":5.5,"publicationDate":"2022-04-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42919589","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":"Driver collusion in ride-hailing platforms","authors":"Manish Tripathy,&nbsp;Jiaru Bai,&nbsp;H. Sebastian (Seb) Heese","doi":"10.1111/deci.12561","DOIUrl":"10.1111/deci.12561","url":null,"abstract":"<p>Many on-demand service platforms employ state-dependent pricing strategies to balance supply capacity and customer demand. In the context of ride-hailing platforms, it has been observed that drivers strategically exploit the structure of such pricing policies by coordinating with each other to deactivate some drivers in order to create an artificial shortage of supply capacity and trigger so-called <i>surge pricing</i>. We develop a simple and high-level analytical framework to structurally characterize the drivers of such collusive behavior and the consequences for drivers and the platform. We find that collusive driver behavior is more likely in settings where customers exhibit moderate sensitivity to waiting time. For some of these cases, if customers continue to request service under driver collusion, the platform may benefit from the higher surge prices. For settings where driver collusion is harmful to the platform, we consider two possible mitigation strategies: a <i>bonus payment</i> structure to eliminate the drivers' incentives to collude, which comes at a direct cost to the platform, and a <i>freeze</i> period after deactivating the app during which drivers cannot reactivate. We show that with the appropriate duration, such a freeze period can effectively eliminate driver collusion without any direct costs to the platform.</p>","PeriodicalId":48256,"journal":{"name":"DECISION SCIENCES","volume":"54 4","pages":"434-446"},"PeriodicalIF":5.5,"publicationDate":"2022-03-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/deci.12561","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48906928","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}