Ambiguity and price competition

Theory and Decision - There are few models of price competition in a homogeneous-good market which permit general asymmetries of information amongst the sellers. This work studies a price game with...     

Clickstream Data and Inventory Management: Model and Empirical Analysis

We consider firms that feature their products on the Internet but take orders offline. Click and order data are disjoint on such non‐transactional websites, and their matching is error‐prone. Yet, their time separation may allow the firm to react and improve its tactical planning. We introduce a dynamic decision support model that augments the classic inventory planning model with additional clickstream state variables. Using a novel data set of matched online clickstream and offline purchasing data, we identify statistically significant clickstream variables and empirically investigate the value of clickstream tracking on non‐transactional websites to improve inventory management. We show that the noisy clickstream data is statistically significant to predict the propensity, amount, and timing of offline orders. A counterfactual analysis shows that using the demand information extracted from the clickstream data can reduce the inventory holding and backordering cost by 3% to 5% in our data set.     

TRUST,SOCIAL CAPITAL,AND ECONOMIC DEVELOPMENT

Many argue that elements of a society's norms, culture, or social capital are central to understanding its development. However, these notions have been difficult to capture in economic models. Here we explore a possible role for “trustworthiness” as corresponding to social capital. Individuals are trustworthy when they perform in accordance with promises, even if this does not maximise their payoffs. The usual focus on incentive structures in motivating behaviour plays no role here. Instead, we emphasise more deep‐seated modes of behaviour and consider trustworthy agents being socialised to act as they do. To model this socialisation, we borrow from a process of preference evolution pioneered by Bisin and Verdier (2001). The model developed endogenously accounts for social capital and explores its role in the process of economic development. It captures in a simple, formal way the interaction between social capital and the economy's productive processes. The results obtained caution against rapid reform and provide an explanation for why late‐developing countries may not easily be able to transplant the modes of production that have proved useful in the West. (JEL: O1, O3, O4, Z1)     

Expatriate contact with a local host: an intervention to increase social support

Social capital is a crucial factor for expatriates to employ as they cope with the demands of an international assignment. This longitudinal study used a mixed method approach to examine the social support benefits of expatriate contact with a local host. Western expatriates in the Netherlands were randomly divided into two groups: an experimental group (n = 33), that had contact with a Dutch host during 9 months, and a control group (n = 32) with no host. Qualitative methods such as interviews and diaries were included to shed light on the various types of social support that occurred. Results show that local hosts offered all four types of social support: social companionship, informational support, emotional support, and instrumental support. Furthermore, expatriates with a host increased their social capital; they received significantly more social support from host nationals than did those without a host. This study shows that HRD professionals may develop the social capital of expatriates by bringing them into contact with a local host, which can produce more social support from host nationals. Increased social capital may lead to a higher performance at both the individual and organisational levels.     

Understanding the complexity of knowledge integration in collaborative new product development teams: A case study

Knowledge integration is important in collaborative new product development (Co-NPD). The research literature shows that the way actors create a shared understanding about the new to create products is a quality indicator of Co-NPD. This study investigates what factors influence the creation of a shared understanding in Co-NPD. The results show factors at three different levels; the actor, project and company level. Additionally, there exist relationships across the factors. The related factors form four different types of interfaces. The interfaces differ from each other since different types of collaborative mechanisms exist within them.     

MATCHING IN INFORMAL FINANCIAL INSTITUTIONS

This paper analyzes an informal financial institution that brings heterogeneous agents together in groups. We analyze decentralized matching into these groups, and the equilibrium composition of participants that consequently arises. We find that participants sort remarkably well across the competing groups, and that they re‐sort immediately following an unexpected exogenous regulatory change. These findings suggest that the competitive matching model might have applicability and bite in other settings where matching is an important equilibrium phenomenon. (JEL: O12, O17, G20, D40)     

TEACHING SUPPLY CHAIN MANAGEMENT THROUGH GLOBAL PROJECTS WITH GLOBAL PROJECT TEAMS

In this article, we describe the Global Project Coordination Course, a course in which project teams composed of three students from each of two overseas universities execute company‐sponsored projects dealing with global supply chain management issues. The $75,000 to $100,00 contributed in total by the three to four sponsoring companies funds all course expenses. We assess the benefits and challenges of the use of cross‐cultural project teams with diverse educational backgrounds. We conclude that the course provides a unique and effective vehicle for furthering students' knowledge of Supply Chain Management and Information Systems, improving understanding of “soft” issues, and training students to work in diverse, global, cross‐cultural project teams.     

The matching extension problem in general graphs is co-NP-complete

A simple connected graph G with 2n vertices is said to be k-extendable for an integer k with \(0<k<n\) if G contains a perfect matching and every matching of cardinality k in G is a subset of some perfect matching. Lakhal and Litzler (Inf Process Lett 65(1):11–16, 1998) discovered a polynomial algorithm that decides whether a bipartite graph is k-extendable. For general graphs, however, it has been an open problem whether there exists a polynomial algorithm. The new result presented in this paper is that the extendability problem is co-NP-complete.     

On the NEH heuristic for minimizing the makespan in permutation flow shops

Over the last 20 years the NEH heuristic of Nawaz, Enscore, and Ham published in this journal has been commonly regarded as the best heuristic for minimizing the makespan in permutation flow shops. In recent years some authors claimed to develop new heuristics that are competitive or outperform NEH. Our study reveals that these claims are not justified. We also address the issue of a fair comparison of the NEH results with those obtained by metaheuristics. Finally we conduct a thorough analysis of NEH leading to its modification which secures the optimality in the two-machine case and improves the general performance.