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Institute for Operations Research and the Management Sciences


Bad side of eCommerce recommendation systems: Overemphasis on hits and blockbusters

Research in Management Science reveals that recommender systems can create self-reinforcing cycles favoring popular items, reducing diversity and serving consumers and producers poorly. To mitigate this issue, designers must consider modifications to limit popularity effects and promote exploration in their recommender systems.

Diverse skills, personalities aid top management teams -- up to a point

Research by Christophe Boone and Walter Hendriks found that IT firms with diverse expertise and work experience tend to be more effective in managing organizations. In contrast, personality diversity hinders firm performance. The study suggests using carefully designed personnel selection techniques to screen for knowledge and experience.

Old-fashioned friendliness trumps incentives among supply chain partners

A recent study published in Management Science found that social preferences, such as status and reciprocity, play a significant role in shaping the behavior of supply chain partners. When these preferences are taken into account, partnerships can become more collaborative and mutually beneficial, leading to improved overall performance.

Research on Priceline-style Web sites favors package deals, says Management Insights

Research suggests that joint bidding on packages can increase consumer surplus and improve profits for both consumers and retailers. In a study, authors found that consumers tend to bid more for individual items when asked to place a joint bid, increasing the probability of a transaction going through.

Prediction markets strong at forecasting US presidential elections, says new management insights

A study by Yale researchers found that prediction markets are a strong tool for forecasting US presidential elections. The authors analyzed the 2004 election market and found that traders quickly assimilated new information as it unfolded over the campaign, indicating their ability to accurately predict outcomes.

Are overconfident CEOs born or made? asks Management Insights study

A study by Matthew T. Billett and Yiming Qian found that CEOs who exhibit self-attribution bias tend to overcredit their role in successful deals and underestimate the impact of luck, leading to more value-destructive acquisitions. The authors advise CEOs to be cautious and boards to ensure proposed deals are judged on their own merits.

Software designers strut their talent at cost of profit, says Management Insights study

A new Management Insights study by Enno Siemsen reveals that software designers intentionally create complex products to advance their careers. Companies are struggling to cope with increasing design complexity, and the study suggests moving compensation agreements towards short-term project success.

Federal polar bear research critically flawed, says study in INFORMS journal

A study published in INFORMS journal Interfaces found that US polar bear research is flawed due to inadequate forecasting methodologies. The researchers concluded that the studies do not adequately support assumptions about sea ice changes and polar bears' ability to adapt, making it difficult to justify listing the species as endangered.

Women whistleblowers suffer more discrimination, INFORMS-published study suggests

A new study published in Organization Science finds that women who report organizational wrongdoing experience more severe retaliation and discrimination than their male counterparts. The study examined the impact of factors such as power relationships and support from colleagues on the severity of retaliation.

Forecasting MDs' prescriptions' choice? Ask their patients, says Management Insights study

A Management Insights study finds that physicians consider patients' inputs when making prescriptions, improving forecasting performance. However, patient influence diminishes for specialist doctors and those treating severe symptoms. The study has significant implications for pharmaceutical executives and marketing strategies.

IT pros with MBAs earn 46 percent more, says Management Insights study

A recent study by Management Insights found that IT professionals with MBAs earn 46% more than those without. In contrast, IT professionals with master's degrees other than an MBA earn 37% less. The study analyzed data on over 50,000 IT professionals in the US and found that firms value IT experience more than non-IT experience.

World's best analysts compete to win Edelman Prize in operations research and analytics

The Institute for Operations Research and the Management Sciences has announced six finalists competing for the 2008 Franz Edelman Award, recognizing outstanding operations research-based projects that transform companies, industries, and lives. The finalists include teams from Western Europe, federal agencies, and a Fortune 500 company.

Fortune 1000 IT investments are riskier than capital investments, says management insights

A recent study by Sanjeev Dewan, Charles Shi, and Vijay Gurbaxani found that information technology (IT) investments are substantially riskier than ordinary capital investments. This increased risk is associated with a substantial risk premium, driven in part by the lost option value of making irreversible capital investment decisions.

Predicting danger of flu pandemic rests on differences in affected population, says O.R. Forum

A new model predicts the danger of flu pandemics by analyzing population heterogeneity. The study highlights the importance of considering individual attributes such as social interaction and susceptibility to infection. Social distancing measures may be effective in limiting the spread of disease, according to the research.

Journal operations research introduces new 'OR forum,' spotlight on leading new research

The Institute for Operations Research and the Management Sciences (INFORMS) has introduced a new bi-monthly feature called OR Forum, which highlights important research in operations research. The first article in OR Forum examines how auction theory fails in practice, specifically combinatorial auctions.