Incentivizing Commuters to Carpool: A Large Field Experiment with Waze

2021 ◽  
Author(s):  
Maxime C. Cohen ◽  
Michael-David Fiszer ◽  
Avia Ratzon ◽  
Roy Sasson
Keyword(s):  
Field Experiment ◽  
Traffic Congestion ◽  
Strong Relationship ◽  
Problem Definition ◽  
Large Field ◽  
Time Saving ◽  
Commute Time ◽  
Global Issue ◽  
Managerial Implications ◽  
Click Through Rate

Problem definition: Traffic congestion is a serious global issue. A potential solution, which requires zero investment in infrastructure, is to convince solo car users to carpool. Academic/practical relevance: In this paper, we leverage the Waze Carpool service and run the largest ever digital field experiment to nudge commuters to carpool. Methodology: Our field experiment involves more than half a million users across four U.S. states between June 10 and July 3, 2019. We identify users who can save a significant commute time by carpooling through the use of a high-occupancy vehicle (HOV) lane, users who can still use an HOV lane but have a low time saving, and users who do not have access to an HOV lane on their commute. We send them in-app notifications with different framings: mentioning the HOV lane, highlighting the time saving, emphasizing the monetary welcome bonus (for users who do not have access to an HOV lane), and a generic carpool invitation. Results: We find a strong relationship between the affinity to carpool and the potential time saving through an HOV lane. Managerial implications: Specifically, we estimate that mentioning the HOV lane increases the click-through rate (i.e., proportion of users who clicked on the button inviting them to try the carpool service) and the onboarding rate (i.e., proportion of users who signed up and created an account with the carpool service) by 133%–185% and 64%–141%, respectively, relative to a generic invitation. We conclude by discussing the implications of our findings for carpool platforms and public policy.

scholarly journals Bus Rapid Transit System Introduction in Johor Bahru: A Simulation-Based Assessment

2021 ◽  
Vol 13 (8) ◽  
pp. 4437
Author(s):  
Sitti Asmah Hassan ◽  
Intan Nurfauzirah Shafiqah Hamzani ◽  
Abd. Ramzi Sabli ◽  
Nur Sabahiah Abdul Sukor
Keyword(s):  
Public Transport ◽  
Traffic Congestion ◽  
Economic Benefits ◽  
Bus Rapid Transit ◽  
Urban Mobility ◽  
Rapid Transit ◽  
Bus Priority ◽  
Time Saving ◽  
Transit System ◽  
Mobility Solution

Bus rapid transit (BRT) is one of the strategies to promote improvements in urban mobility. In this study, BRT scenarios, which integrate exclusive bus lanes and bus priority signal control in mixed traffic scenarios, were modelled using a VISSIM microsimulation. Three scenarios of BRT were modelled to represent 16:84, 38:62 and 54:46 modal splits between public transport and private vehicles. It was found that Scenario 4 (the 54:46 scenario) offers better benefits in terms of delay time saving and economic benefits. In general, it was found that the BRT system enhances the functioning of the transport system and provides people with faster and better mobility facilities, resulting in attractive social and economic benefits, especially on a higher modal split of public transport. It is regarded as one strategy to alleviate traffic congestion and reduce dependency on private vehicles. The finding of this study provides an insight on the effective concept of the BRT system, which may promote the dissemination of an urban mobility solution in the city. The results can help policymakers and local authorities in the management of a transport network in order to ensure reliable and sustainable transport.

Partial Completion as a Nonprofit Strategy

2021 ◽  
Author(s):  
Can Zhang ◽  
Atalay Atasu ◽  
Karthik Ramachandran
Keyword(s):  
Nonprofit Organizations ◽  
Service Provision ◽  
Problem Definition ◽  
Product Service ◽  
Service Portfolio ◽  
Wide Range ◽  
Partial Completion ◽  
Innovative Solution ◽  
Managerial Implications ◽  
Level 3

Problem definition: Faced with the challenge of serving beneficiaries with heterogeneous needs and under budget constraints, some nonprofit organizations (NPOs) have adopted an innovative solution: providing partially complete products or services to beneficiaries. We seek to understand what drives an NPO’s choice of partial completion as a design strategy and how it interacts with the level of variety offered in the NPO’s product or service portfolio. Academic/practical relevance: Although partial product or service provision has been observed in the nonprofit operations, there is limited understanding of when it is an appropriate strategy—a void that we seek to fill in this paper. Methodology: We synthesize the practices of two NPOs operating in different contexts to develop a stylized analytical model to study an NPO’s product/service completion and variety choices. Results: We identify when and to what extent partial completion is optimal for an NPO. We also characterize a budget allocation structure for an NPO between product/service variety and completion. Our analysis sheds light on how beneficiary characteristics (e.g., heterogeneity of their needs, capability to self-complete) and NPO objectives (e.g., total-benefit maximization versus fairness) affect the optimal levels of variety and completion. Managerial implications: We provide three key observations. (1) Partial completion is not a compromise solution to budget limitations but can be an optimal strategy for NPOs under a wide range of circumstances, even in the presence of ample resources. (2) Partial provision is particularly valuable when beneficiary needs are highly heterogeneous, or beneficiaries have high self-completion capabilities. A higher self-completion capability generally implies a lower optimal completion level; however, it may lead to either a higher or a lower optimal variety level. (3) Although providing incomplete products may appear to burden beneficiaries, a lower completion level can be optimal when fairness is factored into an NPO’s objective or when beneficiary capabilities are more heterogeneous.

WHAT DO WE HAVE IN-COMMON? OVERCOMING THE NOT-INVENTED-HERE SYNDROME THROUGH RECATEGORISATION

2021 ◽  
pp. 2150070
Author(s):  
MARION A. WEISSENBERGER-EIBL ◽  
TIM HAMPEL
Keyword(s):  
Field Experiment ◽  
Empirical Evidence ◽  
Group Identity ◽  
Large Field ◽  
External Knowledge ◽  
Identity Model ◽  
Research Gap ◽  
The Common ◽  
Dual Identities

The not-invented-here (NIH) syndrome describes a negatively-shaped attitude of employees towards externally generated knowledge. Despite being cited as one of the largest barriers in the transfer of external knowledge, empirical evidence on interventions to overcome NIH remains scarce. To address this research gap, we design a brief and specificrecategorisational-intervention on basis of the common in-group identity model in order to change employees’ attitudes towards external knowledge directly. Additionally, we take into account the effects of affirmations as a frequently mentioned countermeasure to NIH and also investigate the role of dual identities in recategorisation. To test our hypothesis, we conducted a large field experiment with a total of 1,097 employees within a multinational organisation. Results revealed that (I) organisational identification and status are positively related to higher levels of NIH, (II) a recategorisational-intervention completely removes the NIH bias and leads to a significant increase in the evaluation of external knowledge.

The Effects of Patent Extension and Take-Back Regulation on Green Pharmacy

2021 ◽  
Author(s):  
Tianqin Shi ◽  
Nicholas C. Petruzzi ◽  
Dilip Chhajed
Keyword(s):  
Pharmaceutical Industry ◽  
Social Welfare ◽  
Technical Information ◽  
Problem Definition ◽  
Theoretic Model ◽  
Innovative Company ◽  
Take Back ◽  
Starting Point ◽  
European Environmental Agency ◽  
Managerial Implications

Problem definition: The eco-toxicity arising from unused pharmaceuticals has regulators advocating the benign design concept of “green pharmacy,” but high research and development expenses can be prohibitive. We therefore examine the impacts of two regulatory mechanisms, patent extension and take-back regulation, on inducing drug manufacturers to go green. Academic/practical relevance: One incentive suggested by the European Environmental Agency is a patent extension for a company that redesigns its already patented pharmaceutical to be more environmentally friendly. This incentive can encourage both the development of degradable drugs and the disclosure of technical information. Yet, it is unclear how effective the extension would be in inducing green pharmacy and in maximizing social welfare. Methodology: We develop a game-theoretic model in which an innovative company collects monopoly profits for a patented pharmaceutical but faces competition from a generic rival after the patent expires. A social-welfare-maximizing regulator is the Stackelberg leader. The regulator leads by offering a patent extension to the innovative company while also imposing take-back regulation on the pharmaceutical industry. Then the two-profit maximizing companies respond by setting drug prices and choosing whether to invest in green pharmacy. Results: The regulator’s optimal patent extension offer can induce green pharmacy but only if the offer exceeds a threshold length that depends on the degree of product differentiation present in the pharmaceutical industry. The regulator’s correspondingly optimal take-back regulation generally prescribes a required collection rate that decreases as its optimal patent extension offer increases, and vice versa. Managerial implications: By isolating green pharmacy as a potential target to address pharmaceutical eco-toxicity at its source, the regulatory policy that we consider, which combines the incentive inherent in earning a patent extension on the one hand with the penalty inherent in complying with take-back regulation on the other hand, serves as a useful starting point for policymakers to optimally balance economic welfare considerations with environmental stewardship considerations.

EXPRESS: Variety Effects in Advertising

2021 ◽  
pp. 002224372110560
Author(s):  
Omid Rafieian ◽  
Hema Yoganarasimhan
Keyword(s):  
Response Rate ◽  
Mobile Apps ◽  
Underlying Mechanism ◽  
Experimental Variation ◽  
Different Types ◽  
Unit Increase ◽  
Quasi Experimental ◽  
Managerial Implications ◽  
Click Through Rate ◽  
Empirical Framework

Users are often exposed to a sequence of short-lived marketing interventions (e.g., ads) within each usage session in mobile apps. This study examines how an increase in the variety of ads shown in a session affects a user's response to the next ad. The authors leverage the quasi-experimental variation in ad assignment in their data and propose an empirical framework that accounts for different types confounding to isolate the effects of a unit increase in variety. Across a series of models, the authors consistently show that an increase in ad variety in a session results in a higher response rate to the next ad: holding all else fixed, a unit increase in variety of the prior sequence of ads can increase the click-through rate on the next ad by approximately 13\%. The authors then explore the underlying mechanism and document empirical evidence for an attention-based account. The paper offers important managerial implications since it identifies a source of interdependence across ad exposures that is often ignored in the design of advertising auctions. Further, the attention-based mechanism suggests that platforms can incorporate real-time attention measures to help advertisers with targeting dynamics.

Truthful Mechanisms for Medical Surplus Product Allocation

2020 ◽  
Vol 22 (4) ◽  
pp. 735-753 ◽  
Author(s):  
Can Zhang ◽  
Atalay Atasu ◽  
Turgay Ayer ◽  
L. Beril Toktay
Keyword(s):  
Private Information ◽  
Value Added ◽  
Information Provision ◽  
Problem Definition ◽  
Preference Ranking ◽  
Additional Increase ◽  
Healthcare Facilities ◽  
Selection Decisions ◽  
Managerial Implications ◽  
Recipient Selection

Problem definition: We analyze a resource allocation problem faced by medical surplus recovery organizations (MSROs) that recover medical surplus products to fulfill the needs of underserved healthcare facilities in developing countries. The objective of this study is to identify implementable strategies to support recipient selection decisions to improve MSROs’ value provision capability. Academic/practical relevance: MSRO supply chains face several challenges that differ from those in traditional for-profit settings, and there is a lack of both academic and practical understanding of how to better match supply with demand in this setting where recipient needs are typically private information. Methodology: We propose a mechanism design approach to determine which recipient to serve at each shipping opportunity based on recipients’ reported preference rankings of different products. Results: We find that when MSRO inventory information is shared with recipients, the only truthful mechanism is random selection among recipients, which defeats the purpose of eliciting information. Subsequently, we show that (1) eliminating inventory information provision enlarges the set of truthful mechanisms, thereby increasing the total value provision; and (2) further withholding information regarding other recipients leads to an additional increase in total value provision. Finally, we show that under a class of implementable mechanisms, eliciting recipient valuations has no value added beyond eliciting preference rankings. Managerial implications: (1) MSROs with large recipient bases and low inventory levels can significantly improve their value provision by appropriately determining the recipients to serve through a simple scoring mechanism; (2) to truthfully elicit recipient needs information to support the recipient selection decisions, MSROs should withhold inventory and recipient-base information; and (3) under a set of easy-to-implement scoring mechanisms, it is sufficient for MSROs to elicit recipients’ preference ranking information. Our findings have already led to a change in the practice of an award-winning MSRO.

scholarly journals Concrete Modular Pavements – Types, Issues And Challenges

2019 ◽  
Vol 14 (1) ◽  
pp. 80-103 ◽  
Author(s):  
Audrius Vaitkus ◽  
Judita Gražulytė ◽  
Rita Kleizienė ◽  
Viktoras Vorobjovas ◽  
Ovidijus Šernas
Keyword(s):  
Traffic Congestion ◽  
Road Network ◽  
Load Transfer ◽  
Precast Concrete ◽  
Concrete Slabs ◽  
Time Saving ◽  
Urban Streets ◽  
The Road ◽  
Different Types ◽  
Pavement Construction

According to the European Asphalt Pavement Association, more than 90 per cent of the European road network is paved with asphalt. Constantly increasing traffic volume and climate change accelerate deterioration of current pavements. As a result, there arises a need to rehabilitate them prematurely. Repair and rehabilitation work lead to traffic congestion, which is one of the most significant concerns in highly trafficked roads and urban streets. Concrete modular pavements consisting of precast concrete slabs are a reasonable solution to deal with the road works since their construction, as well as repair, is time-saving. Repair works typically are implemented during a low traffic period (usually at night). A primary purpose of concrete modular pavements is heavily trafficked roads and other transport areas. This paper focuses on concrete modular pavements, their types, issues and challenges related to their design, slab fabrication and pavement construction. The conducted analysis revealed 15 different types of concrete modular pavements that differ from the techniques of slab joints and load transfer between the adjacent slabs. More than 20 issues and challenges related to the design of modular elements, slab fabrication and pavement construction were identified. Finally, the existing practice of concrete modular pavements was summarised and the gaps of scientific knowledge, as well as a need for comprehensive research, were defined.

Managing Congestion in Matching Markets

2021 ◽  
Author(s):  
Nick Arnosti ◽  
Ramesh Johari ◽  
Yash Kanoria
Keyword(s):  
Problem Definition ◽  
Theoretic Model ◽  
Matching Markets ◽  
Contact Potential ◽  
Managerial Implications ◽  
The Commons ◽  
Game Theoretic ◽  
Face Search ◽  
Uniqueness Of Equilibrium ◽  
Never Screened

Problem definition: Participants in matching markets face search and screening costs when seeking a match. We study how platform design can reduce the effort required to find a suitable partner. Practical/academic relevance: The success of matching platforms requires designs that minimize search effort and facilitate efficient market clearing. Methodology: We study a game-theoretic model in which “applicants” and “employers” pay costs to search and screen. An important feature of our model is that both sides may waste effort: Some applications are never screened, and employers screen applicants who may have already matched. We prove existence and uniqueness of equilibrium and characterize welfare for participants on both sides of the market. Results: We identify that the market operates in one of two regimes: It is either screening-limited or application-limited. In screening-limited markets, employer welfare is low, and some employers choose not to participate. This occurs when application costs are low and there are enough employers that most applicants match, implying that many screened applicants are unavailable. In application-limited markets, applicants face a “tragedy of the commons” and send many applications that are never read. The resulting inefficiency is worst when there is a shortage of employers. We show that simple interventions—such as limiting the number of applications that an individual can send, making it more costly to apply, or setting an appropriate market-wide wage—can significantly improve the welfare of agents on one or both sides of the market. Managerial implications: Our results suggest that platforms cannot focus exclusively on attracting participants and making it easy to contact potential match partners. A good user experience requires that participants not waste effort considering possibilities that are unlikely to be available. The operational interventions we study alleviate congestion by ensuring that potential match partners are likely to be available.

Incentives for Shared Services: Multiserver Queueing Systems with Priorities

2021 ◽  
Author(s):  
Hanlin Liu ◽  
Yimin Yu
Keyword(s):  
Cooperative Game ◽  
Cost Allocation ◽  
Service Providers ◽  
Queueing Systems ◽  
Service Level ◽  
Problem Definition ◽  
Shared Services ◽  
Scheduling Policy ◽  
Shared Service ◽  
Managerial Implications

Problem definition: We study shared service whereby multiple independent service providers collaborate by pooling their resources into a shared service center (SSC). The SSC deploys an optimal priority scheduling policy for their customers collectively by accounting for their individual waiting costs and service-level requirements. We model the SSC as a multiclass [Formula: see text] queueing system subject to service-level constraints. Academic/practical relevance: Shared services are increasingly popular among firms for saving operational costs and improving service quality. One key issue in fostering collaboration is the allocation of costs among different firms. Methodology: To incentivize collaboration, we investigate cost allocation rules for the SSC by applying concepts from cooperative game theory. Results: To empower our analysis, we show that a cooperative game with polymatroid optimization can be analyzed via simple auxiliary games. By exploiting the polymatroidal structures of the multiclass queueing systems, we show when the games possess a core allocation. We explore the extent to which our results remain valid for some general cases. Managerial implications: We provide operational insights and guidelines on how to allocate costs for the SSC under the multiserver queueing context with priorities.

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