Model Use in Sustainability Negotiations and Decisions

Informations Systems and Operations Management

Intervenant : Ellen Czaika
Post Doctoral Researcher , Institute for Data, Systems and Society, Massachusetts Institute of Technology (MIT)

1 décembre 2015 - HEC Paris - Campus Jouy en Josas - Bâtiment V - Salle Bernard Ramanantsoa - De 11h30 à 12h30

Sustainability negotiations and decisions require the integration of scientific information with stakeholder interests. Mathematical models help elucidate the physical world and therefore may orient the negotiators in a shared understanding of the physical world. Many researchers suggest collaborative modeling to facilitate integrating scientific information and stakeholder interests. In this thesis, I use methods that enable repeated instances of the same decision; the exploration of alternatives to model use (e.g. learning of a model’s logic, relevant information, or irrelevant information); and the exploration of alternatives to collaborative modeling (e.g. using an expert model or not using a model). This thesis comprises two studies that use serious game role-play simulations. The first study is a computer-driven role-play simulation of governmental policy creation and the second is a five-party role-play simulation to negotiate a more sustainable end-of-life for used paper coffee cups. In the first study, model users reached the Pareto Frontier—the set of non-dominated points—more readily (13%) than non-model-users (2.5%) and model users discovered the win-win nature of electricity access with higher frequency (63%) than non-model users (9%). Participants who learned of the model’s logic through presentation performed nearly as well as model users. In the second study, model use shortened the (mean) duration of the negotiation from 55 minutes to 45 minutes. Negotiating tables that co-created a model had a higher likelihood of reaching favorable agreements (44% compared to 25%). Model use did not significantly alter the value distribution among parties. Tables of negotiators used the model in two predominant manners: to test alternatives as they generated potential agreements and to verify a tentative agreement. The former resulted in higher mean table values than the latter. Together, these studies demonstrate: that mathematical models can be used in sustainability negotiations and decisions with good effect; that learning about the insights of a model is beneficial in decision making—but using a model is more beneficial; and that collaborative model building can provide better negotiation outcomes than using an expert model and can be faster than not using a model.

Motivating Action and Effort: Stimulating Online Reviews by Combining Financial Incentives and Social Norms

Informations Systems and Operations Management

Intervenant : Ravi Bapna
Directeur académique, Directeur de Programme , Carlson

27 novembre 2015 - HEC - Campus Jouy en Josas Bâtiment S Salle 210 - De 14h00 à 15h00

Online reviews enable consumers to learn more about products, yet a majority of products have very few reviews, and those that are provided are often brief and lack useful information. In hopes of motivating consumers to provide useful reviews, we test two influence strategies: (a) offering financial incentives – i.e., a small payment and (b) social norms, wherein we inform people about the volume of reviews authored by peers. We test the effectiveness of these strategies in two randomized experiments, one in the field, conducted in partnership with a large online clothing retailer based in China, and a second on Amazon Mechanical Turk. We find that financial incentives are more effective at getting people to write a review, but they do not lead people to expend effort, thus resulting in reviews that are not particularly useful. In contrast, social norms, while less effective at getting people to write a review, are more effective at motivating people to dedicate effort, leading to more useful reviews. Importantly, we show that the combination of financial incentives and social norms yields the greatest overall benefit, motivating both action and effort. We also provide evidence for the mechanism underlying this joint effect: the presence of a social norm provides people with a plausible rationalization for their decision to write a review as one of intrinsic goodwill, rather than as one of effort for payment. This enables us to circumvent the well-known undermining effect of financial incentives on intrinsic motivation.

The Independent and Combined Effects of External Endorsements on Equity Investments: Evidence from a Randomized Field Experiment

Informations Systems and Operations Management

Intervenant : Sofia BAPNA
PhD candidate Strategic Management and Entrepreneurship , Carlson School of Management

27 novembre 2015 - HEC - Campus Jouy-en-Josas Bâtiment S Salle 210 - De 15h00 à 16h00

This study employs a randomized field experiment to causally identify which signals of external endorsement are most important to equity investors in early stage firms. The three external endorsements examined are: product certification by expert intermediaries; affiliation with prominent others; and social proof, that is, others’ interest in investing in a particular venture. The study, in the context of equity crowdfunding, randomly assigns who is able to view these endorsements and their combinations to make causal inferences about their impact. I find that experienced investors who were able to view the combined product certification and prominent affiliate signals have a 72% higher likelihood of indicating an interest in investing, than those who received no signal. Similarly, experienced investors who were able to view the combined product certification and social proof signals have a 65% higher likelihood of indicating an interest in investing. This suggests that experienced investors follow others (the crowd or high status others) when they have a concrete signal of quality. In contrast, for inexperienced investors, I find that the three endorsements and their combinations are not significantly associated with interest in investing, suggesting a lack of agreement in this group about what factors identify a high potential venture.

Pricing and Capacity Allocation for Shared Services

Informations Systems and Operations Management

Intervenant : Vasiliki Kostami
Assistant Professor , London Business School

12 novembre 2015 - HEC Paris - Campus Jouy en Josas - Bâtiment V - Salle Bernard Ramanantsoa - De 11h30 à 12h30

We study the pricing and capacity allocation problem of a service provider who serves two distinct customer classes. Customers within each class are inherently heterogeneous in their willingness to pay for service, but their utilities are also affected by the presence of other customers in the system. Specifically, customer utilities depend on how many customers are in the system at the time of service as well as who these other customers are. If the service provider can price discriminate between customer classes, pricing out a class, i.e., operating an exclusive system, can sometimes be optimal and that depends only on classes’ perceptions about each other. If the provider must charge a single price, an exclusive system is even more likely. We extend our analysis to a service provider who can prevent class interaction by allocating separate capacity segments to the two customer classes. Under price discrimination, allocating capacity is optimal if our measure of net appreciation between classes is negative. However, under a single–price policy, allocating capacity can be optimal even if this measure is positive. In fact, we show that the nature of asymmetry eventually determines the optimal strategy.

Joint work with Dimitris Kostamis and Serhan Ziya

Short Bio:

Vasiliki Kostami joined the faculty of LBS as an Assistant Professor at the Management Science and Operations Department in 2010 after completing her PhD in Operations Management at Marshall School of Business, USC. Her research interests mainly focus on the management of service operations. She works on the modelling of service systems, such as entertainment facilities, call centers and health care facilities under uncertainty. Specifically, she has looked at queue management problems for amusement parks such as Disneyland, quality management problems for healthcare and optimal inventory management in manufacturing sector. Her research articles have appeared in leading academic journals like M&SOM. She teaches on the full time and executive MBA programmes as well as the PhD programme.

Readmission analytics - Care transformation through information technology

Informations Systems and Operations Management

Intervenant : Mohan Tanniru, Ph.D
Professeur , Université d'Oakland

16 juin 2015 - Campus HEC Jouy-en-Josas Campus - Bâtiment V Salle du Conseil - De 14h30 à 16h00

Health care providers are facing multiple challenges such as improving patient satisfaction, operating with reduced reimbursements, and reducing frequent readmissions. Care providers who address these challenges independently often miss out on opportunities that surface when patient care is viewed within a system, influenced by two environments: clinical environment within the hospital and social environment of patients post-discharge. While hospitals strive for greater efficiencies within the clinical environment, they often find coordination post-discharge to reduce readmissions a major challenge. By viewing the system of patient care through the readmission lens and applying some of the templates discussed under Systematic Inventive Thinking: SIT2 (Inside the Box), this presentation looks at several innovative approaches that can help address patient care both inside and outside the hospital walls by leveraging advances in information technology. Several on-going research projects of care transformation through IT will be highlighted including on-going work of patient care at St Joseph Mercy Hospital in Pontiac, MI and peri-operative care in Stanford Medical School (inside the hospitals), and patient empowerment studies at dialysis centers (DaVita) and medication reconciliation/patient follow-up at nursing homes (outside the hospital).


Informations Systems and Operations Management

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Informations Systems and Operations Management (GREGHEC)

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