Browsing by Subject "Business"

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APPROXIMATION ASSISTED MULTIOBJECTIVE AND COLLABORATIVE ROBUST OPTIMIZATION UNDER INTERVAL UNCERTAINTY
(2012) Hu, Weiwei; Azarm, Shapour; Mechanical Engineering; Digital Repository at the University of Maryland; University of Maryland (College Park, Md.)
Optimization of engineering systems under uncertainty often involves problems that have multiple objectives, constraints and subsystems. The main goal in these problems is to obtain solutions that are optimum and relatively insensitive to uncertainty. Such solutions are called robust optimum solutions. Two classes of such problems are considered in this dissertation. The first class involves Multi-Objective Robust Optimization (MORO) problems under interval uncertainty. In this class, an entire system optimization problem, which has multiple nonlinear objectives and constraints, is solved by a multiobjective optimizer at one level while robustness of trial alternatives generated by the optimizer is evaluated at the other level. This bi-level (or nested) MORO approach can become computationally prohibitive as the size of the problem grows. To address this difficulty, a new and improved MORO approach under interval uncertainty is developed. Unlike the previously reported bi-level MORO methods, the improved MORO performs robustness evaluation only for optimum solutions and uses this information to iteratively shrink the feasible domain and find the location of robust optimum solutions. Compared to the previous bi-level approach, the improved MORO significantly reduces the number of function calls needed to arrive at the solutions. To further improve the computational cost, the improved MORO is combined with an online approximation approach. This new approach is called Approximation-Assisted MORO or AA-MORO. The second class involves Multiobjective collaborative Robust Optimization (McRO) problems. In this class, an entire system optimization problem is decomposed hierarchically along user-defined domain specific boundaries into system optimization problem and several subsystem optimization subproblems. The dissertation presents a new Approximation-Assisted McRO (AA-McRO) approach under interval uncertainty. AA-McRO uses a single-objective optimization problem to coordinate all system and subsystem optimization problems in a Collaborative Optimization (CO) framework. The approach converts the consistency constraints of CO into penalty terms which are integrated into the subsystem objective functions. In this way, AA-McRO is able to explore the design space and obtain optimum design solutions more efficiently compared to a previously reported McRO. Both AA-MORO and AA-McRO approaches are demonstrated with a variety of numerical and engineering optimization examples. It is found that the solutions from both approaches compare well with the previously reported approaches but require a significantly less computational cost. Finally, the AA-MORO has been used in the development of a decision support system for a refinery case study in order to facilitate the integration of engineering and business decisions using an agent-based approach.
AN ASSESSMENT OF THE IMPACT OF UNDESIRABLE OUTPUTS ON THE PRODUCTIVITY OF UNITED STATES MOTOR CARRIERS
(2012) Britto, Rodrigo; Britto, Rodrigo A; Business and Management: Logistics, Business & Public Policy; Digital Repository at the University of Maryland; University of Maryland (College Park, Md.)
The U.S. economy depends heavily on the trucking industry as it moves 70% of the entire nation's freight. With the inclusion of $295 billion in truck trade with Canada and $195.6 billion in truck trade with Mexico in 2007, it is apparent that any disruption in truck traffic will lead to rapid economic instability (ATA Releases: American Trucking Trends 2008 - 2009, 2008). Yet, the critical nature of the trucking industry comes at a societal price. Indeed, undesirable outputs, e.g., truck crashes and associated injuries and fatalities, have very significant economic and human consequences. This dissertation uses Data Envelopment Analysis (DEA) to investigate the impact of undesirable outputs on the productivity of the motor carrier industry during the years 1999-2003. Previous DEA studies at the firm level have focused on the relationship between inputs and desirable outputs. The proposed approach in this dissertation simultaneously considers both the positive and negative outputs. This dissertation addresses two key problems with the DEA analysis technique previously identified by Yang and Pollit (2009): i.e., failure to take into consideration undesirable outputs and the failure to assess the impact of exogenous variables on the DEA scores of individual firms. As a result, this study will provide a new perspective into the productivity of U.S. motor carriers by incorporating both of these considerations into a more comprehensive DEA analysis. It will also provide opportunities to evaluate how individual firms might change their mix of inputs in order to simultaneously maximize desirable outputs and minimize undesirable ones.
Communication and Dialogue Around ESG Metrics for Maryland's Forest Industry
(2022) Moeller, Perri; Ramesh, Abhivrudh; Vindyala, Vishal; Chandra, Romir; D’Alessio, Anthony; Rong Yan, Rong; Daniel, Mya; Farshchi, Nima; Partnership for Action Learning in Sustainability (PALS)
This project involves creating a network for opportunity for learning and showcasing the work developed in Project One (Developing ESG Metrics for Forestry in Western Maryland). While Project One is more research, development, and analytically oriented, this project entails more Public Relations, knowledge sharing, and networking. Students should note that ALEI (the Agricultural Law Education Initiative) is a potential inspiration for what the final results of this project should resemble.
A Decision Support System for Dynamic Integrated Project Scheduling and Equipment Operation Planning
(2012) AHRARI, AMIR; Haghani, Ali; Civil Engineering; Digital Repository at the University of Maryland; University of Maryland (College Park, Md.)
Common practice in scheduling under limited resource availability is to first schedule activities with the assumption of unlimited resources, and then assign required resources to activities until available resources are exhausted. The process of matching a feasible resource plan with a feasible schedule is called resource allocation. Then, to avoid sharp fluctuations in the resource profile, further adjustments are applied to both schedule and resource allocation plan within the limits of feasibility constraints. This process is referred to as resource leveling in the literature. Combination of these three stages constitutes the standard approach of top-down scheduling. In contrast, when scarce and/or expensive resource is to be scheduled, first a feasible and economical resource usage plan is established and then activities are scheduled accordingly. This practice is referred to as bottom-up scheduling in the literature. Several algorithms are developed and implemented in various commercial scheduling software packages to schedule based on either of these approaches. However, in reality resource loaded scheduling problems are somewhere in between these two ends of the spectrum. Additionally, application of either of these conventional approaches results in just a feasible resource loaded schedule which is not necessarily the cost optimal solution. In order to find the cost optimal solution, activity scheduling and resource allocation problems should be considered jointly. In other words, these two individual problems should be formulated and solved as an integrated optimization problem. In this research, a novel integrated optimization model is proposed for solving the resource loaded scheduling problems with concentration on construction heavy equipment being the targeted resource type. Assumptions regarding this particular type of resource along with other practical assumptions are provided for the model through inputs and constraints. The objective function is to minimize the fraction of the execution cost of resource loaded schedule which varies based on the selected solution and thus, considered to be the model's decision making criterion. This fraction of cost which hereafter is referred to as operation cost, encompasses four components namely schedule delay cost, shipping, rental and ownership costs for equipment.
Decisions under Uncertainty in Decentralized Online Markets: Empirical Studies of Peer-to-Peer Lending and Outsourcing
(2010) Lin, Mingfeng; Viswanathan, Siva; Lucas, Hank; Business and Management: Decision & Information Technologies; Digital Repository at the University of Maryland; University of Maryland (College Park, Md.)
Recent developments in information technologies, especially Web 2.0 technologies, have radically transformed many markets through disintermediation and decentralization. Lower barriers of entry in these markets enable small firms and individuals to engage in transactions that were otherwise impossible. Yet, the issues of informational asymmetry that plague traditional markets still arise, only to be exacerbated by the "virtual" nature of these marketplaces. The three essays of my dissertation empirically examine how participants, many of whom are entrepreneurs, tackle the issue of asymmetric information to derive benefits from trade in two different contexts. In Essay 1, I investigate the role of online social networks in mitigating information asymmetry in an online peer-to-peer lending market, and find that the relational dimensions of these networks are especially effective for this purpose. In Essay 2, I exploit a natural experiment in the same marketplace to study the effect of shared geographical ties on investor decisions, and find that "home bias" is not only robust but also has an interesting interaction pattern with rational decision criteria. In Essay 3, I study how the emergence of new contract forms, enabled by new monitoring technologies, changes the effectiveness of traditional signals that affect a buyers' choice of sellers in online outsourcing. Using a matched-sample approach, I show that the effectiveness of online ratings and certifications differs under pay-for-time contracts versus pay-for-deliverable contracts. In all, the three essays of my dissertation present new empirical evidence of how agents leverage various network ties, signals and incentives to facilitate transactions in decentralized online markets, form transactional ties, and reap the benefits enabled by the transformative power of information technologies.
THE EFFECTS OF INFOMEDIARIES, NONMARKET STRATEGIES AND CORPORATE POLITICAL ACTION ON INNOVATION ADOPTION
(2012) Benjamin, Scott; Reger, Rhonda K; Business and Management: Management & Organization; Digital Repository at the University of Maryland; University of Maryland (College Park, Md.)
Strategic management research has recently become interested in the role of strategies that effect social stakeholders, such as the media, and how they affect the adoption of technological innovation. This dissertation consists of two essays that investigate how these stakeholders affect technological innovation adoption and how firms can increase the likelihood of having their products adopted by influencing these stakeholders. The first essay takes a fine-grained approach at investigating how the content of media coverage influences the adoption of wind projects in the United States wind energy industry. By focusing on certain characteristics of media coverage, I develop a theoretical framework that examines how coverage facilitates perception formation of an innovation in the market. Using content analysis, I examine certain characteristics of media coverage including media attention, positivity of tenor, issue diversity, economic & aesthetic issues and complexity of messaging, and hypothesize about the impact these characteristics have on how quickly stakeholders coalesce around a unified vision of a new technology. The second essay builds on the first essay by exploring how firms employ strategies in both social and political markets in an attempt to influence different segments of the general environment. I argue theoretically that general environmental segments, such as sociocultural and political markets, that were typically thought of as exogenous to the firm may be impacted by the firm. By introducing media specific concepts from the organizational literature and political strategies from the public policy domain to strategic management, this study investigates how firms can achieve more rapid technological innovation adoption by strategically using 1) social exchange mechanisms with the media for the facilitation of perception formation in the market and 2) corporate political activity to influence policy makers for the creation of beneficial legislation. I study both of these phenomena using a comprehensive sample of U.S. based wind projects that have either been proposed or are commercially operational between 2000 and 2009. The findings from both of these essays advance strategic management research by connecting themes from organizational research, mass communications and public policy research to help explain perception formation and technological innovation adoption in the market.
EMPLOYEE VOICE BEHAVIOR DURING ORGANIZATIONAL CHANGE
(2013) Shin, Jiseon; Taylor, M. Susan; Seo, Myeong-Su; Business and Management: Management & Organization; Digital Repository at the University of Maryland; University of Maryland (College Park, Md.)
I seek to understand the dynamic organizational change process by focusing on employees' change-related voice as the mechanism through which their dissatisfaction with change implementation processes relates to their positive behavioral outcomes during organizational change. I propose that employees who are dissatisfied with their organization's change implementation processes are more likely to engage in change-related voice behavior - defined as behavior that expresses constructive suggestions (promotive voice) and challenges (prohibitive voice) to improve change processes - and that their affective commitment to change, change efficacy, and work-unit leader's empowering leader behavior will positively moderate the relationship between dissatisfaction and change-related voice behavior. Through a survey with a sample of 192 employees and 27 work-unit leaders working for an organization undergoing a large-scale organizational change, I found that the patterns of how the hypothesized antecedents relate to change-related voice behavior vary depending on the type of voice behavior. Specifically, employees are more likely to make constructive suggestions (promotive voice) when their work-unit leader shows empowering behaviors and when they are high in change efficacy. Employees who are dissatisfied with the change implementation processes engage in promotive voice behavior only when they are strongly committed to change (affective commitment to change) and believe they are not capable of handling change demands (change efficacy). Furthermore, employees tend to point out problems in current change implementation processes (prohibitive voice) when the levels of their work-unit leader's empowering leader behavior and dissatisfaction with the current change processes are high; and the relationship between dissatisfaction and prohibitive voice was stronger when the level of their change efficacy is low rather than high. Lastly, increased levels of employee change-related voice behavior in both types are positively related with their individual performance of change tasks.
Enabling environments
(2012) Farmanesh, Amir; Graham, Carol; Schelling, Thomas C.; Public Policy; Digital Repository at the University of Maryland; University of Maryland (College Park, Md.)
A strong and growing private sector is a critical factor for the promotion of growth and the increase of opportunities for all. A vibrant business sector would mean economic investment, job creation, improvement in overall productivity, and an increase in the economic pie for all those involved in a society. To foster the growth of a legal business sector, governments and policy makers around the world have been interested in learning about effective policies and implementing wide-ranging reforms. This general policy climate which supports and enhances the growth of the formal private business sector has been called a business-enabling environment. The fundamental premise is that growth of the official business sector of economic activity requires good regulations, strong economic fundamentals, and a nourishing sociopolitical structure. The question to which this dissertation responds is which of these factors are quantitatively significant in describing the number of registered businesses worldwide and how these factors compare to each other when they are tested econometrically beside each other. Would the ease of doing business variables still be significant in describing the number of registered businesses when it is compared to fundamental macro policy factors such as corporate tax rate? How far does business bribery affect business growth? This dissertation presents an effort to quantitatively analyze these factors and their effects on the business growth worldwide. It also offers an estimate on the amount of annual business to government bribery around the world disaggregated to a national level. It offers an estimation of national annual bribes paid by the business sector to governments, in each country worldwide, in the currency of that country at the time, and the equivalent amount in US dollars.
ESSAYS IN (I) STRATEGIC ORDERING WITH ENDOGENOUS SEQUENCE OF EVENTS IN SUPPLY CHAIN (II) STRATEGIC MANAGEMENT OF NEW PRODUCT INNOVATION AND PROCESS IMPROVEMENT
(2012) Kim, Yongjae; Xu, Yi; Goyal, Manu; Business and Management: Decision & Information Technologies; Digital Repository at the University of Maryland; University of Maryland (College Park, Md.)
This dissertation discusses two research problems. First topic is strategic information management in supply chain, and second topic is analytical modeling approach in productivity dilemma. The first two chapters of dissertation discuss the impact of information asymmetry and competition on vertical contractual relationships, and risk neutral firms' strategic ordering decisions with minimal assumptions. Modern business environment caused by competition and information asymmetry plagues most firms across industries, often leading to suboptimal outcomes. Given the lead times in planning capacity, suppliers prefer earlier orders from their downstream partners (retailers). Much attention has been given in the literature to Advance Purchase Discount (APD), where the supplier lowers the wholesale price to entice the retailers to order early. In this dissertation, we suggest another avenue of early purchase model considering more realistic ways - competition between downstream retailers and information flows (from information acquisition to dissemination) in supply chain. We show that with one retailer having "better" market demand information on uncertain demand than the other, the supplier can induce earlier ordering from the better-informed retailer without any reduction in the wholesale price, or creating rationing risk. In addition, we investigate firm's information investment decisions corresponding to the timing of the orders. We extend the model with different information structures of firms such as imperfect and evolving information. In reality, firms can have more accurate market information near the selling season by acquiring it from more diverse resources. Consistent with practice, we explorer firm's equilibrium outcomes of endogenous sequencing game with this setting. The third chapter of dissertation is in the trade-off between production efficiency and new product innovation. A firm's ability to compete over time has been rooted not only in improved efficiency, but also in its ability to be simultaneously innovative (Abernathy (1978)). This trade-off between efficiency and innovation has long been discussed in the business context, but limited analytical research has been done using the `extreme value theory' (Dahan & Mendelson (2001)) to investigate this issue. Our model considers important exogenous innovation factors such as innovation characteristics (Benner & Tushman (2003)) and degree of competition, which has yielded the following theoretical results and practical implications. First, we highlight new product characteristics. If R&D projects are paradigm-shifting innovations, there is a stronger adverse effect between efficiency and innovation than incremental innovation. Second, competition results in underinvestment effort in innovation performance for the firms. For example, in the symmetric firms' competition, the optimal size of R&D projects decreased, as competition increases. On the other hand, firms are more likely to focus on process improvement activities.
Essays in Retail Operations and Humanitarian Logistics
(2011) Panchamgam, Kiran Venkata; Golden, Bruce L; Karaesmen Aydin, Itir Z; Business and Management: Decision & Information Technologies; Digital Repository at the University of Maryland; University of Maryland (College Park, Md.)
This dissertation introduces and analyzes research problems related to Retail Operations and Humanitarian Logistics. In Retail Operations, the inventory that ends up as unsaleable at primary markets can be significant (up to 20% of the retail product). Thus retailers look for strategies like selling in secondary markets at a discounted price. In such a setting, the decisions of how much to order for a product of limited shelf life and when (if at all) to start selling the product in the secondary market become critical because these decisions not only affect the retailer's cost of procurement and sales revenues obtained from the product but also affect utilization of shelf space, product rollover and assortment decisions of the retailer. Apart from using secondary markets, retailers that sell seasonal products or products with sales horizons shorter than the typical production/procurement lead time also enter into contractual agreements with suppliers. These contracts are in place to share risks associated with unknown or uncertain demand for the product. Presence of such contracts does affect a retailer's order quantity as well as the time to start selling in the secondary market. In our two essays on retail operations, we analyze a retailer's optimal order quantity and when he/she starts selling in the secondary market. We refer to the former as the 'ordering decision' and the latter as the 'timing decision.' These two decisions are studied first without risk sharing contracts in Essay 1, and then in the presence of contracts in Essay 2. In Essay 1, we build a two-stage model with demand uncertainty. The ordering decision is made in the first stage considering cost of procurement and expected sales revenue. The timing decision is made in the second stage and is conditional on the order quantity determined in the first stage. We introduce a new class of aggregate demand model for this model. We study the structural properties of the retailer's timing and ordering problem and identify optimality conditions for the timing decision. Finally, we complement our analytical results with computational experiments and show how retailer's optimal decisions change when problem parameters are varied. In Essay 2, we extend the work in first essay to include the contracts between the retailer and a supplier. In this essay, we introduce a time-based Poisson demand model. We define three di®erent types of contracts and investigate the effect of each of these contracts on the retailer's ordering and timing decisions. We investigate how the analytical structure of the retailer's decision changes in the presence of these contracts. For a given order quantity, we show that the timing decision depends on the type of contract. Our analytical results on the timing decision are complemented with computational experiments where we investigate the impact of contract type on the optimal order quantity of the retailer. In Humanitarian Logistics, non-profit organizations receive several-billion-dollars-worth of donations every year but lack a sophisticated system to handle their complex logistics operations; the absence of expertly-designed systems is one of the significant reasons why there has been a weak link in the distribution of relief aid. The distribution of relief aid is a complex problem as the goal is humanitarian yet at the same time, due to limited resources, the operations have to be efficient. In the two essays on humanitarian logistics, we study the distribution of aid using homogeneous fleet, with and without capacity restrictions. In Essay 3, we discuss routing for relief operations using one vehicle without capacity restrictions. Contrary to the existing vehicle routing models, the key property of our routing models is that the nodes have priorities along with humanitarian needs. We formulate this model with d-Relaxed Priority rule that captures distance and response time. We formulate routing models with strict and relaxed forms of priority restrictions as Mixed Integer Programs (MIP). We derive bounds for this problem and show that this bound is attained in limiting condition for a worst-case example. Finally, we evaluate the optimal solutions on test problems for response time and distance and show that our vehicle routing model with priorities captures the trade-off between distance and response time unlike existing Vehicle Routing Problem (VRP) models without priorities. In Essay 4, we extend the problem dealt in third essay to consider fleet consisting of multiple vehicles (homogeneous) with capacity and route length restrictions. First, we show that the humanitarian aspect imposes additional challenges and develop routing models that capture performance metrics like fill rate, distance traversed, response time and number of victims satisfied. Proposed routing models are formulated as Mixed Integer Programs and are solved to optimality for small test problems. We conduct computational experiment and show that our models perform well on these performance metrics.
Essays on Business Economics
(2011) Sertsios Belmar, Giorgo T; Betancourt, Roger R; Phillips, Gordon M; Economics; Digital Repository at the University of Maryland; University of Maryland (College Park, Md.)
This dissertation consists of three essays, of which two are related. In the first essay I model the interaction between a franchisor and its franchisees. I examine how a franchisor uses the investment requirements she asks franchisees as a tool to reduce franchisees' underprovision of sales effort. Theoretically, I show that if the franchisor's reputation is highly important the franchisor asks for higher investment requirements when penalizing a misbehaving franchise is more difficult (weaker law enforcement) and when directly monitoring franchisees is more costly. In the second essay, I empirically test the theoretical predictions of the first essay using two datasets at the franchisor level. I measure weak law enforcement using the passing of state level good-cause termination/nonrenewal laws for franchise contracts and I measure monitoring costs using the number of states in which a franchisor operates. Using a database that contains information for 278 franchisors, before and after the laws were passed in some states, I find that the passing of the laws implied an incremental 4.7% increase in investment requirements for franchisors located in states where the laws were passed. Using a large database (10,047 franchisor-year observations), posterior to the passing of the laws, I find that franchisors located in states where good-cause termination/nonrenewal laws were passed ask for investment requirements 4.5% higher than franchisors located in states without such laws. Using both datasets I find evidence that franchisors that expand their operations to an additional state increase the average investment requirements they ask a prospective franchisee between 0.6-1%. The third essay, which is in conjunction with Gordon Phillips, empirically studies how financial distress and bankruptcy affects firms' choices of product quality and prices using data from the airline industry. We find that an airline's quality and pricing decisions are differentially affected by financial distress and bankruptcy. Product quality decreases when airlines are in financial distress, consistent with financial distress reducing a firm's incentive to invest in quality. In addition, firms price more aggressively when in financial distress consistent with them trying to increase short-term market share and revenues. In contrast, in bankruptcy product quality increases relative to financial distress periods.
Essays on Information Flows and Auction Outcomes in Business-to-Business Market: Theoretical and Empirical Evidence
(2013) Pilehvar, Ali; Elmaghraby, Wedad; Gopal, Anandasivam; Business and Management: Decision & Information Technologies; Digital Repository at the University of Maryland; University of Maryland (College Park, Md.)
In this dissertation, I have three separate essays in the context of Business-to Business (B2B) auctions; in each I introduce a complex problem regarding the impact of information flows on auction's performance which has not been addressed by prior auction literature. The first two essays (Chapter 1 and 2) are empirical studies in the context of online secondary market B2B auctions while the third essay (Chapter 3) is a theoretical investigation and will contribute to the B2B procurement auction literature. The findings from this dissertation have managerial implications of how/when auctioneers can improve the efficiency or success of their operations. B2B auctions are new types of ventures which have begun to shape how industries of all types trade goods. Online B2B auctions have also become particularly popular for industrial procurement and liquidation purposes. By using online B2B auctions companies can benefit by creating competition when auctioning off goods or contracts to business customers. B2B Procurement auctions− where the buyer runs an auction to procure goods and services from suppliers− have been documented as saving firms millions of dollars by lowering the cost of procurement. On the other hand, B2B auctions are also commonly used by sellers in `secondary market' to liquidate the left-over goods to business buyers in a timely fashion. In order to maximize revenues in either both industrial procurement or secondary market settings, auctioneers should understand how the auction participants behave and react to the available market information or auction design. Auctioneers can then use this knowledge to improve the performance of their B2B auctions by choosing the right auction design or strategies. In the first essay, I investigate how an online B2B secondary market auction environment can provide several sources of information that can be used by bidders to form their bids. One such information set that has been relatively understudied in the literature pertains to reference prices available to the bidder from other concurrent and comparable auctions. I will examine how reference prices from such auctions affect bidding behavior on the focal auction conditioning on bidders' types. I will use longitudinal data of auctions and bids for more than 4000 B2B auctions collected from a large liquidator firm in North America. In the second essay, I report on the results of a field experiment that I carried out on a secondary market auction site of another one of the nation's largest B2B wholesale liquidators. The design of this field experiment on iPad marketplace is directly aimed at understanding how (i) the starting price of the auction, and (ii) the number of auctions for a specific (model, quality), i.e., the supply of that product, interact to impact the auction final price. I also explore how a seller should manage the product differentiation so that she auctions off the right mix and supply of products at the reasonable starting prices. Finally, in the last essay, I study a norm used in many procurement auctions in which buyers grant the `Right of First Refusal' (ROFR) to a favored supplier. Under ROFR, the favored supplier sees the bids of all other participating suppliers and has the opportunity to match the (current) winning bid. I verify the conventional wisdom that ROFR increases the buyer's procurement cost in a single auction setting. With a looming second auction in the future (with the same participating suppliers), I show that the buyer lowers his procurement cost by granting the ROFR to a supplier. The analytical findings of this essay highlights the critical role of information flows and the timing of information-release in procurement auctions with ROFR.
Essays on Issues in New Product Introduction: Product Rollovers, Information Provision, and Return Policies
(2011) Koca, Eylem; Souza, Gilvan C; Xu, Yi; Business and Management: Decision & Information Technologies; Digital Repository at the University of Maryland; University of Maryland (College Park, Md.)
In this dissertation we study several key issues faced by firms while introducing new products to market. The first essay looks at product rollovers: introduction of a new product generation while phasing out the old one. We study the strategic decision of dual vs. single roll jointly with operational decisions of inventory and pricing during this transitional period. Our results confirm previous findings and uncover the role and interaction of several parameters that were not examined before. In the second essay, we investigate the role of information provision and return policies in the consumer purchasing behavior and on the overall market outcome. We build a novel model of consumer learning, and we attain significant analytical findings without making any distributional assumptions. We then fully study the joint optimization problem analytically under uniform valuations. In the third essay, we study competition in the framework described in the second essay and we identify the potential Nash equilibria and associated conditions. Our findings demonstrate the effect of competition on return policy and information provision decisions and provide insight on some real-life observations.
ESSAYS ON MARKET MICROSTRUCTURE AND HIGH FREQUENCY TRADING
(2014) Li, Wei; Kyle, Albert S.; Business and Management: Finance; Digital Repository at the University of Maryland; University of Maryland (College Park, Md.)
This dissertation includes two chapters on topics related to market microstruc- ture and high frequency trading. In the first chapter, I explore the effects of speed differences among front-running high frequency traders (HFTs) in a model of one round of trading. Traders differ in speed and their speed differences matter. I model strategic interactions induced when HFTs have different speeds in an extended Kyle (1985) framework. HFTs are assumed to anticipate incoming orders and trade rapidly to exploit normal-speed traders' latencies. Upon observing a common noisy signal about the incoming order flow, faster HFTs react more quickly than slower HFTs. I find that these front-running HFTs effectively levy a tax on normal-speed traders, making markets less liquid and prices ultimately less informative. Such negative effects on market quality are more severe when HFTs have more heterogeneous speeds. Even when infinitely many HFTs compete, their negative effects in general do not vanish. I analyze policy proposals concerning HFTs and find that (1) lowering the frequency of trading reduces the negative impact of HFTs on market quality and (2) randomizing the sequence of order execution can degrade market quality when the randomizing interval is short. Consistent with empirical findings, a small number of HFTs can generate a large fraction of the trading volume and HFTs' profits depend on their speeds relative to other HFTs. In the second chapter, I study the effects of higher trading frequency and front-running in a dynamic model. I find that a higher trading frequency improves the informativeness of prices and increases the trading losses of liquidity driven noise traders. When the trading frequency is finite, the existence of HFT front-runners hampers price efficiency and market liquidity. In the limit when trading frequency is infinitely high, however, information efficiency is unaffected by front-running HFTs and these HFTs make all profits from noise traders who do not smooth out their trades.
An Exploration of Publics' Understandings of Corporate Social Responsibility, Shared Values, and the Pepsi Refresh Campaign
(2011) Raudenbush, Janna Lee; Toth, Elizabeth L; Communication; Digital Repository at the University of Maryland; University of Maryland (College Park, Md.)
This study is an exploratory investigation of corporate social responsibility (CSR) from the publics' perspectives. Using the Pepsi Refresh campaign to provide context, perceptions of CSR, including motivations for and impacts of such efforts, were accessed. Specifically, impact was considered through the lens of stakeholder management theory to determine how the campaign affected views of the corporation's values. This study expands understandings of the Pepsi Refresh campaign's target audience through twenty-six in-depth interviews with young adults. Results suggest young adults conceptualize CSR somewhat differently than other publics, emphasizing the importance of fine-tuned knowledge of specific publics. Many interviewees expressed that they are less influenced by CSR than others, signifying a third-person effect. In addition, corporate gain was noted as significant motivation for CSR. Furthermore, perception of shared values between PepsiCo and the public was limited, suggesting stakeholder management theory should be employed holistically rather than solely through CSR efforts.
EXPLORING AND MODELING OF BIDDING BEHAVIOR AND STRATEGIES OF ONLINE AUCTIONS
(2013) Guo, Wei; Rand, William; Jank, Wolfgang; Mathematics; Digital Repository at the University of Maryland; University of Maryland (College Park, Md.)
Internet auctions, as an exemplar of the recent boom in e-commerce, are grow- ing faster than ever in the last decade. Understanding the reasons why bidders be- have a certain way allows invaluable insight into the auction process. This research focuses on methods for modeling, testing and estimation of bidders' behavior and strategies. I start my discussion with bid shading, which is a common strategy bidders believe obtains the lowest possible price. While almost all bidders shade their bids, at least to some degree, it is impossible to infer the degree and volume of shaded bids directly from observed bidding data. In fact, most bidding data only allows researchers to observe the resulting price process, i.e. whether prices increase fast (due to little shading) or whether they slow down (when all bidders shade their bids). In this work, I propose an agent-based model that simulates bidders with different bidding strategies and their interaction with one another. The model is calibrated (and hence properties about the propensity and degree of shaded bids are estimated) by matching the emerging simulated price process with that of the observed auction data using genetic algorithms. From a statistical point of view, this is challenging because it requires matching functional draws from simulated and real price processes. I propose several competing fitness functions and explore how the choice alters the resulting ABM calibration. The method is applied to the context of eBay auctions for digital cameras and show that a balanced fitness function yields the best results. Furthermore, in light of the discrepancy find from the model in bidders' be- havior and optimal strategies proposed from online auction literature. I extract empirical bidding strategies from auction winners and utilize the agent based model to simulate and test the performance of twenty-four different empirical and theo- retical strategies. The experiment results suggest that some empirical strategies perform robustly when compared to theoretical strategies and taking into account other bidders' ability to learn. In addition, I expended the online auction framework from single auction to multiple auction simulation, which acts as a platform for investigating and test- ing more complicated situations that involves the competition among concurrent auctions. This framework facilitates my investigation of bidders' switching behavior and enables me to answer a series questions. For example, is it beneficial for auction website to promote bidders' switching behavior? Will bidders and even sellers get any advantage from bidders' switching? What is the best auction recommendation strategy for online auction website to obtain higher profit and/or a better customer experience? Through careful experiment design, it has been showed that higher switching frequency leads to higher profit for auction website and reduces the price dispersion, which leads to reduced risk for both bidders and sellers. In addition, the best auction recommendation strategy is providing the five earliest closing auctions so that bidders can choose the lowest price auction.
Getting on the Same Page: How Leaders Build Trust Consensus in Teams and Its Consequences
(2012) Fulmer, C. Ashley; Ostroff, Cheri; Psychology; Digital Repository at the University of Maryland; University of Maryland (College Park, Md.)
Existing organizational research has demonstrated that team members' trust in leaders is positively related to a team's bottom-line outcomes. However, little is known about how collective trust in leaders develops among team members. To address this gap, the present study examines the effects of multiple emergent processes on the extent to which team members exhibit consensus in trust in their leader. In particular, it was proposed that the most important factors for the emergence, and the degree of consensus, of collective trust in leaders should have the same referent target as the collective construct (i.e., the leader) and concern behaviors that involve interactions between the leader and team members. Thus, the leader behavior and interactions variables of showing concern, leading by example, and monitoring were expected to exert stronger influence on the consensus in trust in leaders than leader attributes (ability and integrity) and team factors (open communication and demographic diversity). Further, the degree of consensus in trust in leaders was predicted to have both an independent and interaction effect with the mean level of trust in leaders in influencing team performance and voice behavior. Three waves of survey data were collected from teams with new leadership in a large academic military institution. Data from 719 team members from 105 teams were used to test these predictions by analyzing consensus concurrently and changes in consensus over time. The results generally supported the relative importance of leader showing concern and leading by example on the degree of consensus in trust in leaders in the concurrent model. For changes in consensus, leading by example was particularly important. In addition, while consensus was not independently related to the team performance and voice behaviors, it interacted with the mean level in influencing the outcomes in both the concurrent and change models. Taken together, the findings suggest that some leader behaviors are important for the development of collective trust or consensus in trust in leaders, and further suggest that consensus can act as a boundary condition for the effect of the mean level of trust in leaders on team outcomes. By focusing on the consensus in trust in leaders, this research begins to shed light on how consensus in trust develops among team members with respect to their leader and has implications for understanding trust, leadership, and emergence.
GOVERNANCE STRATEGIES FOR ENTERPRISE APPLICATION SYSTEM IMPLEMENTATIONS
(2013) Ghosh, Saumyendu N.; Skibniewski, Miroslaw J; Civil Engineering; Digital Repository at the University of Maryland; University of Maryland (College Park, Md.)
Enterprise application system implementations are highly complex implementations that automate several business functions, such as financials, accounting, supply chain, customer services management, human resources management and reporting among others. This study aims at providing an alternative view of organization's enterprise application system (EAS) acceptance. Despite the large body of literature, there are still empirical inquiries to investigate the EAS system implementation from adopters' perspectives and how to identify risks in a multi-stakeholder and dynamic environment. The thesis consists of three essays on various aspects of relationship between enterprise application implementation in a multi-stakeholder environment and project governance. Valid measurement scales for predicting organization's acceptance of enterprise systems are in short supply. The first essay develops and validates new scales for two specific variables, integration and inter-dependency risks. These variables are hypothesized as key determinant for organizational success of enterprise application implementations by mitigating risks involved in a multi-stakeholder environment. A model of organization acceptance of enterprise systems was developed using these two scales and then tested for reliability from a total of 365 users and nine application groups. The measures were validated using ten different direct measures with reliabilities between 0.72 and 0.96. Integration risk was significantly related with perceived ease of use, consultant's product knowledge and training provided to the end users. Inter-dependency risk was significantly correlated with perceived usefulness, consultant's industry and product knowledge. Both integration and inter-dependency risks are significantly related with success of the new enterprise application. This study would benefit project executives by offering valuable managerial insights that enable them to appreciate and improve integration and inter-dependency of stakeholders. Implications for theory and practice are discussed for two sub-groups: that less experienced resources treat risks differently than more experienced resources, and business applications compared to technical enterprise applications. Academic community has not addressed governance of enterprise application projects that involve dynamic environments and how to mitigate integration and inter-dependency risks. In the second essay it is argued that acceptance of the system from end users is not enough? Adopters of new enterprise wide information technology solutions get most benefit when the solution continues to be adaptable when business, environment or other organizational priorities change - therefore making an implementation sustainable. The second essay discussed characteristics of sustainability of enterprise application implementation from organizational perspective. A case study was used to validate the characteristics of sustainability. The thesis sought to demonstrate the causal relationship between the organization's preparedness for sustainability and the emergence of implementation problems. The study extracted insight into the criticality of certain factors and the type of problems making decisions under weak governance situation. The third essay develops determinants for project governance success of enterprise application implementations by mitigating risks in a multi-stakeholder environment. This essay develops and validates new scales for five specific variables. Definitions of five variables were used to develop a model that was presented for content validity and then tested for reliability from a total of 117 project executives globally. The measures were validated with reliabilities between 0.73 and 0.94. Relationships between five measures were broken down to meaningful components and a three tier project governance structure was proposed to mitigate integration and inter-dependency risks in a multi-stakeholder environment.
A HALF BILLION DOLLARS ADDING UP TO SMALL CHANGE: THE PROMISES AND PITFALLS OF CORPORATE PHILANTHROPY TO SUPPORT GLOBAL EDUCATION
(2011) van Fleet, Justin William; Klees, Steven J; Education Policy, and Leadership; Digital Repository at the University of Maryland; University of Maryland (College Park, Md.)
At the start of the 21st century, the international community pledged an increase in volume, predictability, and coordination of external financing and monitoring for Education for All goals. Yet despite, this commitment, the global community has fallen far short of mobilizing enough resources to finance basic education for all children by 2015. Estimates support an approximate $16.2 billion in external resources needed to achieve basic education goals; the estimate increases to $25 billion if lower secondary schooling in also included. This study examines the role of U.S. corporate philanthropy to support education in developing countries. The purpose is to map the volume and focus of U.S. corporate philanthropy directed to education in developing countries, highlighting the scope and the limitations of corporate resources for realizing global education goals. The study used a mix-method design combining quantitative and qualitative survey data with qualitative interview data to answer two questions: 1. What is the volume and focus of U.S. corporate philanthropy directed toward education in developing countries? 2. How do corporate contributions to education in developing countries align with the private interests of corporations? This study finds that U.S. companies give a half billion dollars in contributions to education in developing countries annually, spanning multiple themes and targeting over 100 countries. Contributions focus heavily on emerging economies and do not target countries in most need. Additionally, U.S. companies have a variety of business motivations that drive the contributions to education in developing countries. Despite the unique assets of corporate philanthropy which make it an interesting source of financing, there are several limitations and critiques of these contributions. The contributions are typically small, short-term grants to non-profits and very few companies coordinate with governments, donors or other corporate philanthropists. There are also contradictions in the way philanthropy is conducted and tensions between the role of government and corporate resources for education. The study concludes that while corporate philanthropy in its current form may not be an effective source of sustainable financing for education in developing countries, several modifications can be made to improve its effectiveness as a global education financing partner.
The Impact of Airline and Customer Characteristics on Airline and Airport Choice
(2012) Cho, Woohyun; Windle, Robert J; Dresner, Martin E; Business and Management: Logistics, Business & Public Policy; Digital Repository at the University of Maryland; University of Maryland (College Park, Md.)
The customer choice of a particular air flight is composed of two choice decisions in a multi airport region. The customer chooses the airline and the airport that best meets their needs. This dissertation is composed of two essays. The first essay examines the airline choice decision and the second essay investigates the airport choice decision. In the first essay the focus is the impact of airline operational quality among airline characteristics. This may include nonstop flight services, service frequency, on-time operations, etc. These factors contribute to the overall utility of airline service. Improvements in operational quality can lead to increases in reliability and convenience. As a result customers will choose airlines that offer higher levels of operational quality. Particularly, some customers are more sensitive to operational quality based on their unique characteristics and tend to have stronger preference for the airlines that provide higher levels of operational quality. This essay examines the following three issues; (1) the impact of operational quality on customer's choice of airline, (2) the moderating role of operations exposure (i.e., the extent to which customers are exposed to service operations) on customer choice, and (3) the moderating effect of customer characteristics on operational quality. The second essay looks at the impact of Low Cost Carrier (LCC) presence at airports and focuses on the following issues: (1) the impact of LCC presence on a route (after controlling for the impact of fares and service frequencies) on a customer's choice of airport, (2) the moderating effect of customer demographic characteristics on airline characteristics, and (3) the moderating role of the customer's geographical location on a customer's choice of airport. Both of these essays will utilize survey data collected from the customers departing from the three airports in the Washington Metropolitan Area. This data includes customers' choice of airline and airport along with extensive information on each customer including trip related information and demographic information.