Decision Science Digest: February 22, 2023

BALTIMORE, MD, February 22, 2023 –

EDITOR’S NOTE: Decision Science Digest is a periodic communique highlighting recent peer-reviewed research published by INFORMS, the largest association for the decision and data sciences, across its 17 journals. This issue highlights four press releases based on the findings of new peer-reviewed articles.

• New Research Finds 12% Increase in Revenue When Gig Economy Workers Work Together (INFORMS journal Management Science)
• Increasing Airline Revenue by Incorporating Quality Differences into Airfare Price Paths (INFORMS journal Management Science)
• New Research Finds Detailing Wait Times at Urgent Care Centers Weeds Out Less Severe Patients, Cuts Down on Congestion (INFORMS journal Management Science)
• Researchers Identify New Policy to Reward Early Shoppers, Reduce Carbon Footprint (INFORMS journal Manufacturing & Service Operations Management)

Teamwork and Incentives Increase Revenue for Gig Economy Workers

Working as a team makes a big difference, especially for those working in the gig economy. Although it provides workers with benefits such as autonomy and flexibility, it lacks things that organizations offer. New research in the INFORMS journal Management Science finds that putting workers on teams and providing incentives leads to longer hours worked and a 12% increase in revenue. Workers on teams in the same geographical areas also communicate more. The results of the paper, “Putting Teams into the Gig Economy: A Field Experiment at a Ride-Sharing Platform,” show that in the gig economy, platforms can leverage teams and team contests to increase revenue and worker engagement. Link to full article.

Maximizing Revenue through Airfare Price Paths, The Importance of Including Quality Differences between Airlines

Airfares evolve dynamically, giving rise to a “price path.” This price path is controlled by a fare ladder, which defines a set of airfares before the selling season, and revenue management algorithms, which control how fares evolve along the ladder during the season. New research in the INFORMS journal Management Science finds this is not the most effective method and is costing airlines money. In the paper, “Managing Airfares Under Competition: Insights from a Field Experiment,” the researchers partnered with an airline and found that incorporating quality differences between competing airlines creates a smoother and more profitable price path. Link to full article.

Controlling Patient Intake Priority through Wait Time Dashboards at Urgent Care Centers

New research in the INFORMS journal Management Science streamlines patient care at urgent care centers through dashboards detailing real-time wait times. Authors of the paper, “Information Design for Congested Social Services: Optimal Need-Based Persuasion,” find that if designed carefully, these dashboards can be effective in managing congestion without relying on pricing or admission control. The key idea is that by sharing partial, but truthful, information about wait times (e.g., announcing that the wait time is longer than a given threshold without revealing the actual wait time) may dissuade users with less severe needs (e.g., a patient with mild cold symptoms). Link to full article.

New Policy Rewards Early Shoppers, While Still Meeting the Needs of Last-minute Shoppers

Retailers currently apply a strategy in which they pick an order when it is due, which rewards customers ordering late. New research in the INFORMS journal Manufacturing & Service Operations Management rewards customers who order early. The authors argue this is fairer and more sensible, but also enables retailers to better plan operations and reduce carbon emissions and traffic for delivery. The paper, “The Impact of Committing to Customer Orders in Online Retail,” finds that this policy creates a better service experience by consumers and a proven positive impact on logistics efficiency, resulting in a lower carbon footprint. Link to full article.

About INFORMS 

INFORMS advances and promotes the science and technology of decision-making to save lives, save money and solve problems. As the largest association for the decision and data sciences, INFORMS members support organizations and governments at all levels as they work to transform data into information, and information into insights that lead to more efficient, effective, equitable and impactful results. INFORMS’ 10,000+ members comprise a diverse and robust international community of practitioners, researchers, educators and students from a variety of fields. 

###

Contact:

Ashley Smith

443-757-3578

[email protected]

Subscribe and stay up to date on the latest from INFORMS. 

Sign Up For Email Updates