In an innovation contest, a firm (the seeker) facing innovation-related problem (e.g., technical R&D problem) posts this to population of independent agents solvers) and then provides award the agent that generated best solution. paper, we analyze interaction between seeker set solvers. Prior research in economics suggests having many solvers work on will lead lower equilibrium effort for each solver, which is undesirable from perspective seeker. contrast, establish can benefit larger...

In a wide variety of settings, organizations generate number possible solutions to problem—ideas—and then select few for further development. We examine the effectiveness two group structures such tasks—the team structure, in which works together time and space, hybrid individuals first work independently together. define performance as quality best ideas identified. Prior research has defined average or generated, ignoring what most seek, great ideas. build theory that relates...

Much of prior work in the area service operations management has assumed rates to be exogenous level load on system. Using operational data from patient transport services and cardiothoracic surgery—two vastly different health-care delivery services—we show that processing speed workers is influenced by system load. We find accelerate rate as increases. In particular, a 10% increase reduces length stay two days for surgery patients, whereas 20% transporters time 30 seconds. Moreover, we such...

This paper explores the rationing of bed capacity in a cardiac intensive care unit (ICU). We find that length stay for patients admitted to ICU is influenced by occupancy level ICU. In particular, patient likely be discharged early when high. turn leads an increased likelihood having readmitted at later time. Such “bounce-backs” have implications overall effective capacity—an discharge immediately frees up capacity, but risk (potentially much higher) requirement needs readmitted. analyze...

Secure messaging, or "e-visits," between patients and providers has sharply increased in recent years, many hope they will help improve healthcare quality, while increasing provider capacity. Using a panel data set from large system the United States, we find that e-visits trigger about 6% more office visits, with mixed results on phone visits patient health. These additional come at sacrifice of new patients: physicians accept 15% fewer each month following e-visit adoption. Our nearly...

Large language models (LLMs) such as OpenAI's GPT series have shown remarkable capabilities in generating fluent and coherent text various domains. We compare the ideation of ChatGPT-4, a chatbot based on state-of-the-art LLM, with those students at an elite university. ChatGPT-4 can generate ideas much faster cheaper than students, are average higher quality (as measured by purchase-intent surveys) exhibit variance quality. More important, vast majority best pooled sample generated ChatGPT...

We present an analytical model of concurrent engineering, where upstream and a down-stream task are overlapped to minimize time-to-market. The gain from overlapping activities must be weighed against the delay rework that results proceeding in parallel based on preliminary information. Communication reduces negative effect at expense communication time. derive optimal levels concurrency combined with communication, we analyze how these two decisions interact presence uncertainty dependence....

Successful application of concurrent development processes (concurrent engineering) requires tight coordination. To speed development, tasks often proceed in parallel by relying on preliminary information from other tasks, that has not yet been finalized. This frequently causes substantial rework using as much 50% total engineering capacity. Previous studies have either described coordination a complex social process, or focused the frequency, but content, exchanges. Through extensive...

An important managerial problem in product design the extent to which testing activities are carried out parallel or series. Parallel has advantage of proceeding more rapidly than serial but does not take potential for learning between tests, thus resulting a larger number tests. We model this trade-off form dynamic program and derive optimal strategy (or mix testing) that minimizes both total cost time testing. as function cost, prior knowledge, lead time. Using information theory measure...

We study the offers submitted by consumers to a large Name-Your-Own-Price (NYOP) online retailer. A distinctive feature of this retailer is that it allows repeatedly submit on one and same product. While could identify threshold price (the minimum for which willing sell) incrementing their offer in small steps each consecutive round, such strategy would require them go through many additional transactions. define frictional cost as disutility consumer experiences when conducting an...

Overlapping development activities is widely used to reduce project completion times in product development. However, research on the applicability of concept different technological environments remains scarce. So far, very few industry-specific studies have statistically confirmed an accelerating effect overlap. In present article we measure effectiveness overlapping reducing time. Building analytical operations management, argue that this differs with organization's capability resolve...

Consumers often know what kind of product they wish to purchase, but do not which specific variant best fits their needs. As a result, consumer may find an acceptable in one retailer nevertheless purchase nothing, opting search other retailers for even better product. We study several models retail assortment planning, some explicitly account and that does not, we call the “no-search” model. Even though no-search model never includes unprofitable assortment, presence search, it indeed be...

We study the demand forecast-sharing process between a buyer of customized production equipment and set suppliers. Based on large data collection we undertook in semiconductor supply chain, empirically investigate relationship buyer's forecasting behavior supplier's delivery performance. The is characterized by frequency magnitude forecast revisions it requests (forecast volatility) as well fraction orders that were forecasted but never actually purchased inflation). performance measured its...

Engineering change orders (ECOs) are part of almost every development process, consuming a significant engineering capacity and contributing heavily to tool costs. Many companies use support process administer ECOs, which fundamentally determines ECO This administrative encompasses the emergence (e.g., problem or market‐driven feature change), management approval change, up change's final implementation. Despite tremendous time pressure in projects general particular, this can consume...

Understanding the value of a product development project is central to firm's choice portfolio. The firm depends not only on its properties but also other projects being developed by firm. This due interactions with that address same consumer need and require resources. In this study, we empirically investigate structure significance these portfolio-level interactions. Using self-developed pharmaceutical industry data set, conduct an event study around failure phase III clinical trials their...

User design offers tantalizing potential benefits to manufacturers and consumers, including a closer match of products user preferences, which should result in higher willingness pay for goods services. There are two fundamental approaches that can be taken design: parameter-based systems needs-based systems. With systems, users directly specify the values parameters product. relative importance their needs, an optimization algorithm recommends combination is likely maximize utility. Through...

The Bass diffusion model is a well-known parametric approach to estimating new product demand trajectory over time. This paper generalizes the by allowing for supply constraint. In presence of constraint, potential customers who are not able obtain join waiting queue, generating backorders and potentially reversing their adoption decision, resulting in lost sales. Consequently, they do generate positive “word-of-mouth” that typically assumed model, leading significant changes dynamics. We...

In this paper, we study the practice of forecast sharing and supply chain coordination with a game-theoretical model. We find that in one-shot version game, forecasts are not shared truthfully by customer. The supplier will rationally discount information her capacity allocation. This results Pareto suboptimality for both parties. However, show more efficient, truth-sharing outcome can emerge as an equilibrium from long-term relationship. equilibrium, is transmitted trusted supplier, who...

We develop a structural demand model that endogenously captures the effect of out-of-stocks on customer choice by simulating time-varying set available alternatives. Our estimation method uses store-level data sales and partial information product availability. allows for flexible substitution patterns, which are based utility maximization principles can accommodate categorical continuous characteristics. The methodology be applied to from multiple markets in categories with relatively large...

This paper studies a model in which consumers search among multiple competing firms for products that match their preferences at reasonable price. We focus on how easier search, possibly due to the adoption of search-facilitating technologies such as Internet, influences equilibrium prices, assortments, firm profits, and consumer welfare. Conventional wisdom suggests creates competition-intensifying effect puts pressure lower prices reduce assortments. However, our we demonstrate also...

The newsvendor model captures the trade-off faced by a decision maker that needs to place firm bet prior occurrence of random event. Previous research in operations management has mostly focused on deriving minimizes expected mismatch costs. In contrast, we present two methods estimate unobservable cost parameters characterizing function. We structural estimation framework accounts for heterogeneity uncertainty as well parameters. develop statistical give consistent estimates primitives, and...

Online service marketplaces allow buyers to post their project requests and providers bid for them. To reduce the transactional risks, typically track publish previous seller performance. By analyzing a detailed data set with more than 1,800,000 bids corresponding 270,000 projects posted between 2001 2010 in leading online intermediary software development services, we empirically study effects of reputation system on market outcomes. We consider both structured measure summarized numerical...