Posted on Wed 23 September 2015 in Innovation, NPD • Tagged with contests, tournaments
Consider a firm which has two employees. We assume that the employees can either work on routine projects and put in efforts \(E_{i}\) (\(i = 1,2\)), in which case, the firm obtains reward \(E_{1} + E_{2}\) from these routine projects, and the employees obtain wages \(wE_{i}\). Note …
Posted on Sun 04 January 2015 in Random Thoughts • Tagged with random thoughts
Suppose that the probability of acceptance at the best journal is \(p\) and at the 2nd best journal is \(\theta p\). Moreover, after a paper has been reviewed once, we have the chance to improve it and consequently increase the probability of acceptance. Let these 2nd chance probabilities be \(\lambda …
Posted on Wed 07 May 2014 in Core OM and supply chain • Tagged with newsvendor model, behavioral OM
How does a retailers order quantity change when his supplier sends products some of which are defective? To answer this question in a concrete context, consider the canonical newsvendor model - demand \(D\) is random and has cdf \(F\left( \cdot \right)\); cost per unit when the firm places orders is …
Posted on Tue 06 May 2014 in Core OM and supply chain • Tagged with demand chasing, behavioral OM
Experimental literature that has looked at newsvendor decision-making documents a phenomenon called demand chasing wherein a decision-maker adjusts her order quantity in each period toward the demand realization in past period. This behavior is so obviously “irrational” (given the typical newsvendor setup where each period’s demand is statistically independent …