Dépouillements

Hiring cheerleaders / Lauren Cohen in Management science, Vol. 58 N° 6 (Juin 2012) 

Public ISBD [article]  in Management science > Vol. 58 N° 6 (Juin 2012) . - pp.1039-1058. Titre : Hiring cheerleaders : Board appointments of “Independent” directors Type de document : texte imprimé Auteurs : Lauren Cohen, Auteur ; Andrea Frazzini, Auteur ; Christopher J. Malloy, Auteur Année de publication : 2012 Article en page(s) : pp.1039-1058. Note générale : Management Langues : Anglais (eng) Mots-clés : Independent  directors  Appointments  Analysts  Board  members Résumé : We provide evidence that firms appoint independent directors who are overly sympathetic to management, while still technically independent according to regulatory definitions. We explore a subset of independent directors for whom we have detailed, microlevel data on their views regarding the firm prior to being appointed to the board: sell-side analysts who are subsequently appointed to the boards of companies they previously covered. We find that boards appoint overly optimistic analysts who are also poor relative performers. The magnitude of the optimistic bias is large: 82.0% of appointed recommendations are strong buy/buy recommendations, compared with 56.9% for all other analyst recommendations. We also show that appointed analysts' optimism is stronger at precisely those times when firms' benefits are larger. Last, we find that appointing firms are more likely to have management on the board nominating committee, appear to be poorly governed, and increase earnings management and chief executive officer compensation following these board appointments. ISSN : 0025-1909 En ligne : http://mansci.journal.informs.org/content/early/2012/03/09/mnsc.1110.1483.abstra [...] [article] Hiring cheerleaders : Board appointments of “Independent” directors [texte imprimé] / Lauren Cohen, Auteur ; Andrea Frazzini, Auteur ; Christopher J. Malloy, Auteur . - 2012 . - pp.1039-1058. Management Langues : Anglais (eng) in Management science > Vol. 58 N° 6 (Juin 2012) . - pp.1039-1058. Mots-clés : Independent  directors  Appointments  Analysts  Board  members Résumé : We provide evidence that firms appoint independent directors who are overly sympathetic to management, while still technically independent according to regulatory definitions. We explore a subset of independent directors for whom we have detailed, microlevel data on their views regarding the firm prior to being appointed to the board: sell-side analysts who are subsequently appointed to the boards of companies they previously covered. We find that boards appoint overly optimistic analysts who are also poor relative performers. The magnitude of the optimistic bias is large: 82.0% of appointed recommendations are strong buy/buy recommendations, compared with 56.9% for all other analyst recommendations. We also show that appointed analysts' optimism is stronger at precisely those times when firms' benefits are larger. Last, we find that appointing firms are more likely to have management on the board nominating committee, appear to be poorly governed, and increase earnings management and chief executive officer compensation following these board appointments. ISSN : 0025-1909 En ligne : http://mansci.journal.informs.org/content/early/2012/03/09/mnsc.1110.1483.abstra [...]

Home sweet home / Michael S. Dahl in Management science, Vol. 58 N° 6 (Juin 2012) 

Public ISBD [article]  in Management science > Vol. 58 N° 6 (Juin 2012) . - pp.1059-1071 Titre : Home sweet home : Entrepreneurs' location choices and the performance of their ventures Type de document : texte imprimé Auteurs : Michael S. Dahl, Auteur ; Olav Sorenson, Auteur Année de publication : 2012 Article en page(s) : pp.1059-1071 Note générale : Management Langues : Anglais (eng) Mots-clés : Organizational  studies  Effectiveness–performance  Behavior  Economics  Econometrics Résumé : Entrepreneurs, even more than employees, tend to locate in regions in which they have deep roots (“home” regions). Here, we examine the performance implications of these choices. Whereas one might expect entrepreneurs to perform better in these regions because of their richer endowments of regionally embedded social capital, they might also perform worse if their location choices rather reflect a preference for spending time with family and friends. We examine this question using comprehensive data on Danish start-ups. Ventures perform better—survive longer and generate greater annual profits and cash flows—when located in regions in which their founders have lived longer. This effect appears substantial, similar in size to the value of prior experience in the industry (i.e., to being a spin-off). ISSN : 0025-1909 En ligne : http://mansci.journal.informs.org/content/58/6/1059.abstract [article] Home sweet home : Entrepreneurs' location choices and the performance of their ventures [texte imprimé] / Michael S. Dahl, Auteur ; Olav Sorenson, Auteur . - 2012 . - pp.1059-1071. Management Langues : Anglais (eng) in Management science > Vol. 58 N° 6 (Juin 2012) . - pp.1059-1071 Mots-clés : Organizational  studies  Effectiveness–performance  Behavior  Economics  Econometrics Résumé : Entrepreneurs, even more than employees, tend to locate in regions in which they have deep roots (“home” regions). Here, we examine the performance implications of these choices. Whereas one might expect entrepreneurs to perform better in these regions because of their richer endowments of regionally embedded social capital, they might also perform worse if their location choices rather reflect a preference for spending time with family and friends. We examine this question using comprehensive data on Danish start-ups. Ventures perform better—survive longer and generate greater annual profits and cash flows—when located in regions in which their founders have lived longer. This effect appears substantial, similar in size to the value of prior experience in the industry (i.e., to being a spin-off). ISSN : 0025-1909 En ligne : http://mansci.journal.informs.org/content/58/6/1059.abstract

Consumption externality and yield uncertainty in the influenza vaccine supply chain / Kenan Arifoglu in Management science, Vol. 58 N° 6 (Juin 2012) 

Public ISBD [article]  in Management science > Vol. 58 N° 6 (Juin 2012) . - pp.1072-1091 Titre : Consumption externality and yield uncertainty in the influenza vaccine supply chain : Interventions in demand and supply sides Type de document : texte imprimé Auteurs : Kenan Arifoglu, Auteur ; Sarang Deo, Auteur ; Seyed M. R. Iravani, Auteur Année de publication : 2012 Article en page(s) : pp.1072-1091 Note générale : Management Langues : Anglais (eng) Mots-clés : Influenza  vaccine  Supply  chain  inefficiency  Strategic  consumer  behavior  Externality  Yield  uncertainty Résumé : We study the impact of yield uncertainty (supply side) and self-interested consumers (demand side) on the inefficiency in the influenza vaccine supply chain. Previous economic studies, focusing on demand side, find that the equilibrium demand is always less than the socially optimal demand because self-interested individuals do not internalize the social benefit of protecting others via reduced infectiousness (positive externality). In contrast, we show that the equilibrium demand can be greater than the socially optimal demand after accounting for the limited supply due to yield uncertainty and manufacturer's incentives. The main driver for this result is a second (negative) externality: Self-interested individuals ignore that vaccinating people with high infection costs is more beneficial for the society when supply is limited. We show that the extent of the negative externality can be reduced through more efficient and less uncertain allocation mechanisms. To investigate the relative effectiveness of government interventions on supply and demand sides under various demand and supply characteristics, we construct two partially centralized scenarios where the social planner (i.e., government) intervenes either on the demand side or the supply side, but not both. We conduct an extensive numerical analysis. ISSN : 0025-1909 En ligne : http://mansci.journal.informs.org/content/58/6/1072.short [article] Consumption externality and yield uncertainty in the influenza vaccine supply chain : Interventions in demand and supply sides [texte imprimé] / Kenan Arifoglu, Auteur ; Sarang Deo, Auteur ; Seyed M. R. Iravani, Auteur . - 2012 . - pp.1072-1091. Management Langues : Anglais (eng) in Management science > Vol. 58 N° 6 (Juin 2012) . - pp.1072-1091 Mots-clés : Influenza  vaccine  Supply  chain  inefficiency  Strategic  consumer  behavior  Externality  Yield  uncertainty Résumé : We study the impact of yield uncertainty (supply side) and self-interested consumers (demand side) on the inefficiency in the influenza vaccine supply chain. Previous economic studies, focusing on demand side, find that the equilibrium demand is always less than the socially optimal demand because self-interested individuals do not internalize the social benefit of protecting others via reduced infectiousness (positive externality). In contrast, we show that the equilibrium demand can be greater than the socially optimal demand after accounting for the limited supply due to yield uncertainty and manufacturer's incentives. The main driver for this result is a second (negative) externality: Self-interested individuals ignore that vaccinating people with high infection costs is more beneficial for the society when supply is limited. We show that the extent of the negative externality can be reduced through more efficient and less uncertain allocation mechanisms. To investigate the relative effectiveness of government interventions on supply and demand sides under various demand and supply characteristics, we construct two partially centralized scenarios where the social planner (i.e., government) intervenes either on the demand side or the supply side, but not both. We conduct an extensive numerical analysis. ISSN : 0025-1909 En ligne : http://mansci.journal.informs.org/content/58/6/1072.short

An evidence - based incentive system for medicare's end - stage renal disease program / Donald K. K. Lee in Management science, Vol. 58 N° 6 (Juin 2012) 

Public ISBD [article]  in Management science > Vol. 58 N° 6 (Juin 2012) . - pp. 1092-1105 Titre : An evidence - based incentive system for medicare's end - stage renal disease program Type de document : texte imprimé Auteurs : Donald K. K. Lee, Auteur ; Stefanos A. Zenios, Auteur Année de publication : 2012 Article en page(s) : pp. 1092-1105 Note générale : Management Langues : Anglais (eng) Mots-clés : Healthcare  pay-for-performance  Dialysis  Evidence-based  mechanism  design  Structural  estimation Résumé : Recent legislations directed Medicare to revamp its decades-old system for reimbursing dialysis treatments, with focus on the risk adjustment of payments and on the transition toward a pay-for-compliance system. To design an optimal payment system that incorporates these features, we develop an empirical method to estimate the structural parameters of the principal–agent model underlying Medicare's dialysis payment system. We use the model and parameter estimates to answer the following questions: Can a pay-for-compliance system based only on the intermediate performance measures currently identified by Medicare achieve first-best? How should patient outcomes be risk adjusted, and what welfare gains can be achieved by doing so? Our main findings are as follows: (1) the current set of intermediate measures identified by Medicare are not comprehensive enough for use alone in a pay-for-compliance system; (2) paying for risk-adjusted downstream outcomes instead of raw downstream outcomes can lengthen the hospital-free life of admitted patients by two weeks per patient per year without increasing Medicare expenditures. ISSN : 0025-1909 En ligne : http://mansci.journal.informs.org/content/58/6/1092.short [article] An evidence - based incentive system for medicare's end - stage renal disease program [texte imprimé] / Donald K. K. Lee, Auteur ; Stefanos A. Zenios, Auteur . - 2012 . - pp. 1092-1105. Management Langues : Anglais (eng) in Management science > Vol. 58 N° 6 (Juin 2012) . - pp. 1092-1105 Mots-clés : Healthcare  pay-for-performance  Dialysis  Evidence-based  mechanism  design  Structural  estimation Résumé : Recent legislations directed Medicare to revamp its decades-old system for reimbursing dialysis treatments, with focus on the risk adjustment of payments and on the transition toward a pay-for-compliance system. To design an optimal payment system that incorporates these features, we develop an empirical method to estimate the structural parameters of the principal–agent model underlying Medicare's dialysis payment system. We use the model and parameter estimates to answer the following questions: Can a pay-for-compliance system based only on the intermediate performance measures currently identified by Medicare achieve first-best? How should patient outcomes be risk adjusted, and what welfare gains can be achieved by doing so? Our main findings are as follows: (1) the current set of intermediate measures identified by Medicare are not comprehensive enough for use alone in a pay-for-compliance system; (2) paying for risk-adjusted downstream outcomes instead of raw downstream outcomes can lengthen the hospital-free life of admitted patients by two weeks per patient per year without increasing Medicare expenditures. ISSN : 0025-1909 En ligne : http://mansci.journal.informs.org/content/58/6/1092.short

Organizational structure and the limits of knowledge sharing / Lamar Pierce in Management science, Vol. 58 N° 6 (Juin 2012) 

Public ISBD [article]  in Management science > Vol. 58 N° 6 (Juin 2012) . - pp.1106-1121 Titre : Organizational structure and the limits of knowledge sharing : Incentive conflict and agency in car leasing Type de document : texte imprimé Auteurs : Lamar Pierce, Auteur Année de publication : 2012 Article en page(s) : pp.1106-1121 Note générale : Management Langues : Anglais (eng) Mots-clés : Knowledge-based  view  Vertical  integration  Leasing  Agency  theory  Automotive  industry Résumé : This paper argues that conflicting incentives among managers may impede potential knowledge-sharing benefits from vertical integration. I study knowledge-based agency costs from vertical integration in car leasing, where manufacturer-owned captive lessors compete with independent lessors. Both organizational forms must acquire and integrate diffuse knowledge to accurately predict vehicle depreciation—a condition critical for profitability. Using a data set of 180,000 leases, I compare contracts of independent and captive lessors across car models, market conditions, and product life cycles. I find that managers in vertically integrated firms have conflicting incentives on whether to accurately and completely share proprietary knowledge, and show that these incentives appear to generate agency costs inconsistent with corporate profitability as managers selectively use and share knowledge for personal gain. The findings suggest that most knowledge benefits of vertical integration will be nullified when managerial interests are incompatible with the profit concerns of the firm. ISSN : 0025-1909 En ligne : http://mansci.journal.informs.org/content/58/6/1106.short [article] Organizational structure and the limits of knowledge sharing : Incentive conflict and agency in car leasing [texte imprimé] / Lamar Pierce, Auteur . - 2012 . - pp.1106-1121. Management Langues : Anglais (eng) in Management science > Vol. 58 N° 6 (Juin 2012) . - pp.1106-1121 Mots-clés : Knowledge-based  view  Vertical  integration  Leasing  Agency  theory  Automotive  industry Résumé : This paper argues that conflicting incentives among managers may impede potential knowledge-sharing benefits from vertical integration. I study knowledge-based agency costs from vertical integration in car leasing, where manufacturer-owned captive lessors compete with independent lessors. Both organizational forms must acquire and integrate diffuse knowledge to accurately predict vehicle depreciation—a condition critical for profitability. Using a data set of 180,000 leases, I compare contracts of independent and captive lessors across car models, market conditions, and product life cycles. I find that managers in vertically integrated firms have conflicting incentives on whether to accurately and completely share proprietary knowledge, and show that these incentives appear to generate agency costs inconsistent with corporate profitability as managers selectively use and share knowledge for personal gain. The findings suggest that most knowledge benefits of vertical integration will be nullified when managerial interests are incompatible with the profit concerns of the firm. ISSN : 0025-1909 En ligne : http://mansci.journal.informs.org/content/58/6/1106.short

Reconceptualizing stars / Alexander Oettl in Management science, Vol. 58 N° 6 (Juin 2012) 

Public ISBD [article]  in Management science > Vol. 58 N° 6 (Juin 2012) . - pp.1122-1140 Titre : Reconceptualizing stars : Scientist helpfulness and peer performance Type de document : texte imprimé Auteurs : Alexander Oettl, Auteur Année de publication : 2012 Article en page(s) : pp.1122-1140 Note générale : Management Langues : Anglais (eng) Mots-clés : Star  scientists  Human  capital  Helpfulness  Productivity Résumé : It is surprising that the prevailing performance taxonomy for scientists (star versus nonstar) focuses only on individual output and ignores social behavior, because innovation is often characterized as a communal process. To develop a deeper understanding of the mechanisms by which scientists influence the productivity of others, I expand the traditional taxonomy of scientists that focuses solely on productivity and add a second, social dimension: helpfulness to others. Using a combination of academic paper publications and citations to capture scientist productivity and the receipt of academic paper acknowledgments to measure helpfulness, I examine the change in publishing output of the coauthors of 149 scientists that die. Coauthors of highly helpful scientists that die experience a decrease in output quality but not output quantity. Meanwhile, the deaths of high productivity scientists that are not highly helpful do not influence their coauthors' output. In addition, scientists who are helpful with conceptual feedback (critique and advice) have a larger impact on the performance of their coauthors than scientists who provide help with material access, scientific tools, or technical work. Within the context of evaluating scientific productivity, it may be time to update our conceptualization of a “star.” ISSN : 0025-1909 En ligne : http://mansci.journal.informs.org/content/58/6/1122.short [article] Reconceptualizing stars : Scientist helpfulness and peer performance [texte imprimé] / Alexander Oettl, Auteur . - 2012 . - pp.1122-1140. Management Langues : Anglais (eng) in Management science > Vol. 58 N° 6 (Juin 2012) . - pp.1122-1140 Mots-clés : Star  scientists  Human  capital  Helpfulness  Productivity Résumé : It is surprising that the prevailing performance taxonomy for scientists (star versus nonstar) focuses only on individual output and ignores social behavior, because innovation is often characterized as a communal process. To develop a deeper understanding of the mechanisms by which scientists influence the productivity of others, I expand the traditional taxonomy of scientists that focuses solely on productivity and add a second, social dimension: helpfulness to others. Using a combination of academic paper publications and citations to capture scientist productivity and the receipt of academic paper acknowledgments to measure helpfulness, I examine the change in publishing output of the coauthors of 149 scientists that die. Coauthors of highly helpful scientists that die experience a decrease in output quality but not output quantity. Meanwhile, the deaths of high productivity scientists that are not highly helpful do not influence their coauthors' output. In addition, scientists who are helpful with conceptual feedback (critique and advice) have a larger impact on the performance of their coauthors than scientists who provide help with material access, scientific tools, or technical work. Within the context of evaluating scientific productivity, it may be time to update our conceptualization of a “star.” ISSN : 0025-1909 En ligne : http://mansci.journal.informs.org/content/58/6/1122.short

Specialization and variety in repetitive tasks / Bradley R. Staats in Management science, Vol. 58 N° 6 (Juin 2012) 

Public ISBD [article]  in Management science > Vol. 58 N° 6 (Juin 2012) . - pp.1141-1159 Titre : Specialization and variety in repetitive tasks : Evidence from a japanese bank Type de document : texte imprimé Auteurs : Bradley R. Staats, Auteur ; Francesca Gino, Auteur Année de publication : 2012 Article en page(s) : pp.1141-1159 Note générale : Management Langues : Anglais (eng) Mots-clés : Learning  Motivation  Productivity  Specialization  VarietyWork  fragmentation Résumé : Sustaining operational productivity in the completion of repetitive tasks is critical to many organizations' success. Yet research points to two different work-design–related strategies for accomplishing this goal: specialization to capture the benefits of repetition and variety (i.e., working on different tasks) to keep workers motivated and provide them opportunities to learn. In this paper, we investigate how these two strategies may bring different productivity benefits over time. For our empirical analyses, we use two and a half years of transaction data from a Japanese bank's home loan application-processing line. We find that over the course of a single day, specialization, as compared to variety, is related to improved worker productivity. However, when we examine workers' experience across a number of days, we find that variety helps improve worker productivity. Additionally, we show that part of this benefit results from workers' cumulative experience with changeovers. Our results highlight the need for organizations to transform specialization and variety into mutually reinforcing strategies rather than treating them as mutually exclusive. Overall, our paper identifies new ways to improve operational performance through the effective allocation of work. ISSN : 0025-1909 En ligne : http://mansci.journal.informs.org/content/early/2012/03/09/mnsc.1110.1482 [article] Specialization and variety in repetitive tasks : Evidence from a japanese bank [texte imprimé] / Bradley R. Staats, Auteur ; Francesca Gino, Auteur . - 2012 . - pp.1141-1159. Management Langues : Anglais (eng) in Management science > Vol. 58 N° 6 (Juin 2012) . - pp.1141-1159 Mots-clés : Learning  Motivation  Productivity  Specialization  VarietyWork  fragmentation Résumé : Sustaining operational productivity in the completion of repetitive tasks is critical to many organizations' success. Yet research points to two different work-design–related strategies for accomplishing this goal: specialization to capture the benefits of repetition and variety (i.e., working on different tasks) to keep workers motivated and provide them opportunities to learn. In this paper, we investigate how these two strategies may bring different productivity benefits over time. For our empirical analyses, we use two and a half years of transaction data from a Japanese bank's home loan application-processing line. We find that over the course of a single day, specialization, as compared to variety, is related to improved worker productivity. However, when we examine workers' experience across a number of days, we find that variety helps improve worker productivity. Additionally, we show that part of this benefit results from workers' cumulative experience with changeovers. Our results highlight the need for organizations to transform specialization and variety into mutually reinforcing strategies rather than treating them as mutually exclusive. Overall, our paper identifies new ways to improve operational performance through the effective allocation of work. ISSN : 0025-1909 En ligne : http://mansci.journal.informs.org/content/early/2012/03/09/mnsc.1110.1482

Advance selling when consumers regret / Javad Nasiry in Management science, Vol. 58 N° 6 (Juin 2012) 

Public ISBD [article]  in Management science > Vol. 58 N° 6 (Juin 2012) . - pp.1160-1177 Titre : Advance selling when consumers regret Type de document : texte imprimé Auteurs : Javad Nasiry, Auteur ; Ioana Popescu, Auteur Année de publication : 2012 Article en page(s) : pp.1160-1177 Note générale : Management Langues : Anglais (eng) Mots-clés : Advance  selling  Behavioral  pricing  Consumer  regret  Refunds  Consumer  options Résumé : We characterize the effect of anticipated regret on consumer decisions and on firm profits and policies in an advance selling context where buyers have uncertain valuations. Advance purchases trigger action regret if valuations turn out to be lower than the price paid, whereas delaying purchase may cause inaction regret from missing a discount or facing a stockout. Consumers whom we describe as emotionally rational act strategically in response to the firm's policies and in anticipation of regret. In this context, regret explains two types of behavioral patterns: inertia (delayed purchase) and frenzies (buying early at negative surplus). We show how firms should optimally respond to consumer regret and also characterize a normative regret threshold above which they should not advance sell. Action regret reduces profits as well as the value of advance selling and booking limit policies for price-setting firms; inaction regret has the opposite effects. These effects are diminished by capacity constraints and are reversed for firms facing price pressure in the advance period (owing, e.g., to competition or market heterogeneity). Regret heterogeneity explains premium advance selling for the capacity-constrained firm, which may benefit from larger shares of regretful buyers. Finally, we show how the negative effects of regret on profits can be mitigated by regret-priming marketing campaigns and by offering refunds or options or allowing resales. Our results highlight the importance of assessing the relative strength of regret within and across market segments and of accounting for these factors in pricing and marketing policies. ISSN : 0025-1909 En ligne : http://mansci.journal.informs.org/content/58/6/1160.abstract [article] Advance selling when consumers regret [texte imprimé] / Javad Nasiry, Auteur ; Ioana Popescu, Auteur . - 2012 . - pp.1160-1177. Management Langues : Anglais (eng) in Management science > Vol. 58 N° 6 (Juin 2012) . - pp.1160-1177 Mots-clés : Advance  selling  Behavioral  pricing  Consumer  regret  Refunds  Consumer  options Résumé : We characterize the effect of anticipated regret on consumer decisions and on firm profits and policies in an advance selling context where buyers have uncertain valuations. Advance purchases trigger action regret if valuations turn out to be lower than the price paid, whereas delaying purchase may cause inaction regret from missing a discount or facing a stockout. Consumers whom we describe as emotionally rational act strategically in response to the firm's policies and in anticipation of regret. In this context, regret explains two types of behavioral patterns: inertia (delayed purchase) and frenzies (buying early at negative surplus). We show how firms should optimally respond to consumer regret and also characterize a normative regret threshold above which they should not advance sell. Action regret reduces profits as well as the value of advance selling and booking limit policies for price-setting firms; inaction regret has the opposite effects. These effects are diminished by capacity constraints and are reversed for firms facing price pressure in the advance period (owing, e.g., to competition or market heterogeneity). Regret heterogeneity explains premium advance selling for the capacity-constrained firm, which may benefit from larger shares of regretful buyers. Finally, we show how the negative effects of regret on profits can be mitigated by regret-priming marketing campaigns and by offering refunds or options or allowing resales. Our results highlight the importance of assessing the relative strength of regret within and across market segments and of accounting for these factors in pricing and marketing policies. ISSN : 0025-1909 En ligne : http://mansci.journal.informs.org/content/58/6/1160.abstract

Double marginalization in performance - based advertising / Chrysanthos Dellarocas in Management science, Vol. 58 N° 6 (Juin 2012) 

Public ISBD [article]  in Management science > Vol. 58 N° 6 (Juin 2012) . - pp.1178-1195 Titre : Double marginalization in performance - based advertising : Implications and solutions Type de document : texte imprimé Auteurs : Chrysanthos Dellarocas, Auteur Année de publication : 2012 Article en page(s) : pp.1178-1195 Langues : Anglais (eng) Mots-clés : Information  systems  Digital  marketing  Advertising  Electronic  markets  and  auctions  Electronic  commerce  Sponsored  search  Keyword  auctions Résumé : An important current trend in advertising is the replacement of traditional pay-per-exposure (pay-per-impression) pricing models with performance-based mechanisms in which advertisers pay only for measurable actions by consumers. Such pay-per-action (PPA) mechanisms are becoming the predominant method of selling advertising on the Internet. Well-known examples include pay-per-click, pay-per-call, and pay-per-sale. This work highlights an important, and hitherto unrecognized, side effect of PPA advertising. I find that, if the prices of advertised goods are endogenously determined by advertisers to maximize profits net of advertising expenses, PPA mechanisms induce firms to distort the prices of their goods (usually upward) relative to prices that would maximize profits in settings where advertising is sold under pay-per-exposure methods. Upward price distortions reduce both consumer surplus and the joint publisher–advertiser profit, leading to a net reduction in social welfare. They persist in current auction-based PPA mechanisms, such as the ones used by Google, Yahoo!, and Microsoft. In the latter settings they also reduce publisher revenues relative to pay-per-exposure methods. I show that these phenomena constitute a form of double marginalization and discuss a number of enhancements to today's PPA mechanisms that restore equilibrium pricing of advertised goods to efficient levels, improving both consumer surplus as well as the publisher's expected profits. Note de contenu : Management ISSN : 0025-1909 En ligne : http://mansci.journal.informs.org/content/early/2012/03/09/mnsc.1110.1474.abstra [...] [article] Double marginalization in performance - based advertising : Implications and solutions [texte imprimé] / Chrysanthos Dellarocas, Auteur . - 2012 . - pp.1178-1195. Langues : Anglais (eng) in Management science > Vol. 58 N° 6 (Juin 2012) . - pp.1178-1195 Mots-clés : Information  systems  Digital  marketing  Advertising  Electronic  markets  and  auctions  Electronic  commerce  Sponsored  search  Keyword  auctions Résumé : An important current trend in advertising is the replacement of traditional pay-per-exposure (pay-per-impression) pricing models with performance-based mechanisms in which advertisers pay only for measurable actions by consumers. Such pay-per-action (PPA) mechanisms are becoming the predominant method of selling advertising on the Internet. Well-known examples include pay-per-click, pay-per-call, and pay-per-sale. This work highlights an important, and hitherto unrecognized, side effect of PPA advertising. I find that, if the prices of advertised goods are endogenously determined by advertisers to maximize profits net of advertising expenses, PPA mechanisms induce firms to distort the prices of their goods (usually upward) relative to prices that would maximize profits in settings where advertising is sold under pay-per-exposure methods. Upward price distortions reduce both consumer surplus and the joint publisher–advertiser profit, leading to a net reduction in social welfare. They persist in current auction-based PPA mechanisms, such as the ones used by Google, Yahoo!, and Microsoft. In the latter settings they also reduce publisher revenues relative to pay-per-exposure methods. I show that these phenomena constitute a form of double marginalization and discuss a number of enhancements to today's PPA mechanisms that restore equilibrium pricing of advertised goods to efficient levels, improving both consumer surplus as well as the publisher's expected profits. Note de contenu : Management ISSN : 0025-1909 En ligne : http://mansci.journal.informs.org/content/early/2012/03/09/mnsc.1110.1474.abstra [...]

The strategic perils of low cost outsourcing / Qi Feng in Management science, Vol. 58 N° 6 (Juin 2012) 

Public ISBD [article]  in Management science > Vol. 58 N° 6 (Juin 2012) . - pp.1196-1210 Titre : The strategic perils of low cost outsourcing Type de document : texte imprimé Auteurs : Qi Feng, Auteur ; Lauren Xiaoyuan Lu, Auteur Année de publication : 2012 Article en page(s) : pp.1196-1210 Note générale : Management Langues : Anglais (eng) Mots-clés : Outsourcing  Multiunit  bilateral  bargaining  Competition  Supplier  cost  advantage Résumé : The existing outsourcing literature has generally overlooked the cost differential and contract negotiations between manufacturers and suppliers (by assuming identical cost structures and adopting the Stackelberg framework). One fundamental question yet to be addressed is whether upstream suppliers' cost efficiency is always beneficial to downstream manufacturers in the presence of competition and negotiations. In other words, does low cost outsourcing always lead to a win–win outcome? To answer this question, we adopt a multiunit bilateral bargaining framework to investigate competing manufacturers' sourcing decisions. We analyze two supply chain structures: one-to-one channels, in which each manufacturer may outsource to an exclusive supplier; and one-to-two channels, in which each manufacturer may outsource to a common supplier. We show that, under both structures, low cost outsourcing may lead to a win–lose outcome in which the suppliers gain and the manufacturers lose. This happens because suppliers' cost advantage may backfire on competing manufacturers through two negative effects. First, a decrease of upstream cost weakens a manufacturer's bargaining position by reducing her disagreement payoff (i.e., her insourcing profit) because the competing manufacturer can obtain a low cost position through outsourcing. Second, in one-to-two channels, the common supplier's bargaining position is strengthened with a lower cost because his disagreement payoff increases (i.e., his profit from serving only one manufacturer increases). The endogeneity of disagreement payoffs in our model highlights the importance of modeling firm negotiations under competition. Moreover, we identify an interesting bargaining externality between competing manufacturers when they outsource to a common supplier. Because the supplier engages in two negotiations, his share of profit from the trade with one manufacturer affects the total surplus of the trade with the other manufacturer. Because of this externality, surprisingly, as a manufacturer's bargaining power decreases, her profit under outsourcing may increase and it may be more likely for her to outsource. ISSN : 0025-1909 En ligne : http://mansci.journal.informs.org/content/58/6/1196.abstract [article] The strategic perils of low cost outsourcing [texte imprimé] / Qi Feng, Auteur ; Lauren Xiaoyuan Lu, Auteur . - 2012 . - pp.1196-1210. Management Langues : Anglais (eng) in Management science > Vol. 58 N° 6 (Juin 2012) . - pp.1196-1210 Mots-clés : Outsourcing  Multiunit  bilateral  bargaining  Competition  Supplier  cost  advantage Résumé : The existing outsourcing literature has generally overlooked the cost differential and contract negotiations between manufacturers and suppliers (by assuming identical cost structures and adopting the Stackelberg framework). One fundamental question yet to be addressed is whether upstream suppliers' cost efficiency is always beneficial to downstream manufacturers in the presence of competition and negotiations. In other words, does low cost outsourcing always lead to a win–win outcome? To answer this question, we adopt a multiunit bilateral bargaining framework to investigate competing manufacturers' sourcing decisions. We analyze two supply chain structures: one-to-one channels, in which each manufacturer may outsource to an exclusive supplier; and one-to-two channels, in which each manufacturer may outsource to a common supplier. We show that, under both structures, low cost outsourcing may lead to a win–lose outcome in which the suppliers gain and the manufacturers lose. This happens because suppliers' cost advantage may backfire on competing manufacturers through two negative effects. First, a decrease of upstream cost weakens a manufacturer's bargaining position by reducing her disagreement payoff (i.e., her insourcing profit) because the competing manufacturer can obtain a low cost position through outsourcing. Second, in one-to-two channels, the common supplier's bargaining position is strengthened with a lower cost because his disagreement payoff increases (i.e., his profit from serving only one manufacturer increases). The endogeneity of disagreement payoffs in our model highlights the importance of modeling firm negotiations under competition. Moreover, we identify an interesting bargaining externality between competing manufacturers when they outsource to a common supplier. Because the supplier engages in two negotiations, his share of profit from the trade with one manufacturer affects the total surplus of the trade with the other manufacturer. Because of this externality, surprisingly, as a manufacturer's bargaining power decreases, her profit under outsourcing may increase and it may be more likely for her to outsource. ISSN : 0025-1909 En ligne : http://mansci.journal.informs.org/content/58/6/1196.abstract

Information technology and trademarks / Guodong (Gordon) Gao in Management science, Vol. 58 N° 6 (Juin 2012) 

Public ISBD [article]  in Management science > Vol. 58 N° 6 (Juin 2012) . - pp.1211-1226 Titre : Information technology and trademarks : Implications for product variety Type de document : texte imprimé Auteurs : Guodong (Gordon) Gao, Auteur ; Lorin M. Hitt, Auteur Année de publication : 2012 Article en page(s) : pp.1211-1226 Note générale : Management Langues : Anglais (eng) Mots-clés : Business  value  of  IT  Trademark  Competitive  advantage  Product  variety Résumé : This paper examines the relationship between information technology (IT) and trademarks. Using an 11-year panel data set (1987–1997) of IT capital stock, trademark holdings, and other measures for 116 Fortune 1000 manufacturing firms, we find that IT contributes to higher trademark holdings. Further, we find evidence suggesting that firms with more IT capital tend to apply for more new trademarks and retire existing trademarks more quickly, leading to a shorter trademark life cycle. Because trademarks are mainly used by firms to communicate differences among similar products to the marketplace, these results suggest that the business value of IT can be realized in greater product variety. ISSN : 0025-1909 En ligne : http://mansci.journal.informs.org/content/58/6/1211.short [article] Information technology and trademarks : Implications for product variety [texte imprimé] / Guodong (Gordon) Gao, Auteur ; Lorin M. Hitt, Auteur . - 2012 . - pp.1211-1226. Management Langues : Anglais (eng) in Management science > Vol. 58 N° 6 (Juin 2012) . - pp.1211-1226 Mots-clés : Business  value  of  IT  Trademark  Competitive  advantage  Product  variety Résumé : This paper examines the relationship between information technology (IT) and trademarks. Using an 11-year panel data set (1987–1997) of IT capital stock, trademark holdings, and other measures for 116 Fortune 1000 manufacturing firms, we find that IT contributes to higher trademark holdings. Further, we find evidence suggesting that firms with more IT capital tend to apply for more new trademarks and retire existing trademarks more quickly, leading to a shorter trademark life cycle. Because trademarks are mainly used by firms to communicate differences among similar products to the marketplace, these results suggest that the business value of IT can be realized in greater product variety. ISSN : 0025-1909 En ligne : http://mansci.journal.informs.org/content/58/6/1211.short

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