Regression Using Pairs vs. Regression on Differences: A Real-life Case Study for a Master's Level Methods Class

When teaching regression classes real-life examples help emphasize the importance of understanding theoretical concepts related to methodologies. This can be appreciated after a little reflection on the difficulty of constructing novel questions in regression that test on concepts rather than mere calculations. Interdisciplinary collaborations can be fertile contexts for questions of this type. In this article, we offer a case study that students will find: (1) practical with respect to the question being addressed, (2) compelling in the way it shows how a solid understanding of theory helps answer the question, and (3) enlightening in the way it shows how statisticians contribute to problem solving in interdisciplinary environments. Supplementary materials for this article are available online.     

Getting the most out of reverse e-auction investment

In 1990s, with dramatic price reductions, reverse e-auctions were projected to be a widely used procurement tool. However, not all buyers saw the economic benefits of reverse e-auctions and the current usage is more limited than expected. This study identifies important organizational characteristics that determine the net return of e-auction programs and addresses why adopters of e-auctions experience varying profitability levels from their usage. The first step in the study concentrated on gathering interview and archival data from five large U.S. manufacturing firms that have used reverse e-auctions. Based on the field study findings, controlled experiments were conducted using a simulation model to assess identified influential factors for e-auctions. Implications for supply managers are presented and future research directions are discussed.