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821 items in total found

Journal Articles | 2021

Solving bilevel optimization problems using Kriging Approximations

Ankur Sinha and Vaseem Shaikh

IEEE Transactions on Cybernetics

Bilevel optimization involves two levels of optimization, where one optimization problem is nested within the other. The structure of the problem often requires solving a large number of inner optimization problems that make these kinds of optimization problems expensive to solve. The reaction set mapping and the lower level optimal value function mapping are often used to reduce bilevel optimization problems to a single level; however, the mappings are not known a priori , and the need is to be estimated. Though there exist a few studies that rely on the estimation of these mappings, they are often applied to problems where one of these mappings has a known form, that is, piecewise linear, convex, etc. In this article, we utilize both these mappings together to solve general bilevel optimization problems without any assumptions on the structure of these mappings. Kriging approximations are created during the generations of an evolutionary algorithm, where the population members serve as the samples for creating the approximations. One of the important features of the proposed algorithm is the creation of an auxiliary optimization problem using the Kriging-based metamodel of the lower level optimal value function that solves an approximate relaxation of the bilevel optimization problem. The auxiliary problem when used for local search is able to accelerate the evolutionary algorithm toward the bilevel optimal solution. We perform experiments on two sets of test problems and a problem from the domain of control theory. Our experiments suggest that the approach is quite promising and can lead to substantial savings when solving bilevel optimization problems. The approach is able to outperform state-of-the-art methods that are available for solving bilevel problems, in particular, the savings in function evaluations for the lower level problem are substantial with the proposed approach.

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Journal Articles | 2021

Competitive hub location problem: Model and solution approaches

Richa Tiwari, Sachin Jayaswal, and Ankur Sinha

Transportation Research Part B: Methodological

In this paper, we study the hub location problem of an airline that wants to set up its hub and spoke network, in order to maximize its market share in a competitive market. The market share is maximized under the assumption that customers choose amongst competing airlines on the basis of utility provided by the respective airlines. We provide model formulations for the airline’s problem for two alternate network settings: one in the multiple allocation setting and another in the single allocation setting. Both these formulations are non-linear integer programs, which are intractable for most of the off-the-shelf commercial solvers. We propose two alternate approaches for each of the formulations to solve them optimally. The first among them is based on a mixed integer second order conic program reformulation, and the second uses Kelley’s cutting plane method within Lagrangian relaxation. On the basis of extensive numerical tests on well-known data-sets (CAB and AP), we conclude that the Kelley’s cutting plane within Lagrangian relaxation is computationally the best for both the single and multiple allocation settings, especially for large instances. We are able to solve instances upto 50 nodes from AP data-set within 120 and 10 minutes of CPU time for single and multiple allocation settings, respectively, which were unsolved by mixed integer second order cone based reformulation or Kelley’s cutting plane algorithm in the maximum allowed CPU time (3 hours for single allocation and 1 hour for multiple allocation).

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Journal Articles | 2021

Do Big 4 auditors limit classification shifting? Evidence from India

Neerav Nagar, Naman Desai, and Joshy Jacob

Journal of International Accounting, Auditing and Taxation

Extant research suggests that Big 4 auditors compared to non-Big 4 auditors act as a superior deterrent to accrual-based earnings management. We extend this research to another form of earnings management, classification shifting. Our study examines whether Big 4 auditors are more likely to reduce classification shifting in settings where the enforcement of laws is weak. Big 4 accounting firms, because of their global operations, have incentives to develop and maintain strong and uniform reputation globally. Consistent with this argument, we find that employing Big 4 auditors in India is associated with significantly lower levels of classification shifting. Our results also indicate that Big 4 auditors are likely to charge significantly higher fees than non-Big 4 auditors, which, in turn, is associated with a significant reduction in classification shifting.

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Journal Articles | 2021

Optimal monopoly mechanisms with demand uncertainty

James Peck and Jeevant Rampal

Mathematics of Operations Research

This paper analyzes a monopoly firm’s profit-maximizing mechanism in the following context. There is a continuum of consumers with a unit demand for a good. The distribution of the consumers’ valuations is given by one of two possible demand distributions/states. The consumers are uncertain about the demand state, and they update their beliefs after observing their own valuation for the good. The firm is uncertain about the demand state but infers it from the consumers’ reported valuations. The firm’s problem is to maximize profits by choosing an optimal mechanism among the class of anonymous, deterministic, direct revelation mechanisms that satisfy interim incentive compatibility and ex post individual rationality. We show that, under certain sufficient conditions, the firm’s optimal mechanism is to set the monopoly price in each demand state. Under these conditions, Segal’s optimal ex post mechanism is robust to relaxing ex post incentive compatibility to interim incentive compatibility.

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Journal Articles | 2021

Women’s disempowerment and preferences for skin lightening products that reinforce colorism: Experimental evidence from India

Arzi Adbi, Chirantan Chatterjee, Clarissa Cortland, Zoe Kinias, and Jasjit Singh

Psychology of Women Quarterly

Global racism and colorism, the preference for fairer skin even within ethnic and racial groups, leads millions of women of African, Asian, and Latin descent to use products with chemical ingredients intended to lighten skin color. Drawing from literatures on the impact of chronic and situational disempowerment on behavioral risk-taking to enhance status, we hypothesized that activating feelings of disempowerment would increase women of color’s interest in stronger and riskier products meant to lighten skin tone quickly and effectively. In two experiments (Experiment 1: N = 253 women and 264 men; Experiment 2: replication study, N = 318 women) with distinct samples of Indian participants, we found that being in a state of psychological disempowerment (vs. empowerment) increased Indian women’s preference for stronger and riskier skin lightening products but not for milder products. Indian men’s interest in both types of products was unaffected by the same psychological disempowerment prime. Based on these findings, we recommend increased consideration among teaching faculty, research scholars, and clinicians on how feeling disempowered can lead women of color to take risks to lighten their skin as well as other issues of intersectionality and with respect to colorism. We also encourage the adoption of policies aimed at empowering women of color and minimizing access to harmful skin lightening products.

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Journal Articles | 2021

Estimation of Poisson mean with under‐reported counts: a double sampling approach

Debjit Sengupta, Tathagata Banerjee, and Surupa Roy

Australian & New Zealand Journal of Statistics

Count data arising in various fields of applications are often under-reported. Ignoring undercount naturally leads to biased estimators and inaccurate confidence intervals. In the presence of undercount, in this paper, we develop likelihood-based methodologies for estimation of mean using validation data. The asymptotic distributions of the competing estimators of the mean are derived. The impact of ignoring undercount on the coverage and length of the confidence intervals is investigated using extensive numerical studies. Finally an analysis of heat mortality data is presented.

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Journal Articles | 2021

Stochastic modeling of multiline orders in integrated storage‐order picking system

Vishal Bansal and Debjit Roy

Naval Research Logistics (NRL)

Due to demanding service levels in e-commerce order fulfillment, modeling and analysis of integrated storage and order picking processes in warehouses deserve special attention. The upstream storage system can have a significant impact on the performance of the downstream order picking process. With a particular focus on multiline e-commerce orders, we develop an analytical modeling framework for integrated analysis of upstream (shuttle-based storage and retrieval system) and downstream (pick system) networks. To capture the consolidation delays in fulfilling multiline orders, the downstream pick system is modeled with a closed queuing network that includes synchronization nodes. The configuration of the synchronization station is adapted to model the variety of order profiles handled at the pick station. For the downstream closed queuing network, we propose a decomposition-based solution methodology that results in good solution accuracy. The resulting semi-open queuing network (SOQN) of the integrated system is analyzed using the matrix-geometric method (MGM). To improve the accuracy of analytical estimates of the measures, we propose a hybrid simulation/analytical framework, where the performance measures of complex subnetworks are obtained from simulation. We also develop a detailed simulation model of the physical system for validating the analytical and hybrid estimates of the performance measures. The results from experiments indicate that the hybrid simulation/analytical approach reduces the error in the throughput time estimates to 3% from 18% obtained from the analytical model. Then, we investigate the effect of the upstream network configuration (such as the number of storage aisles) and the downstream network configuration (such as the mixed vs. dedicated picking, CONWIP control for orders, order batching) on the order throughput times. Our analysis provides a threshold on the maximum numbers of allowable orders (CONWIP control) and number of aisles beyond which the improvement in average throughput time of the integrated system is marginal. Numerical experiments with high-order arrivals also highlight that mixed picking in the downstream network can result in significant throughput time reduction in comparison to dedicated picking.

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Journal Articles | 2021

How Does Regulation Impact Strategic Repositioning by Firms Across Submarkets? Evidence from the Indian Pharmaceutical Industry

Ajay Bhaskarabhatla, Priyatam Anurag, Chirantan Chatterjee, and Enrico Pennings

Strategy Science

We study coercive institutional pressures as an impetus for firms to reposition across intraindustry boundaries. Integrating the literatures on strategic repositioning and submarkets, we predict that firms respond to regulations limiting the profitability of a submarket by repositioning and shifting demand to proximate, unregulated submarkets within the industry. We expect repositioning to be more pronounced for firms with greater ability to shift demand across submarkets. Evidence from pharmaceutical firms’ responses to partial price regulation in India supports our hypotheses. Repositioning firms increase prices and sales in the unregulated submarket, consistent with a Dorfman–Steiner-type model of endogenous and costly demand shifting toward the unregulated submarket. We contribute to the literature on strategic repositioning and highlight challenges of regulating industries with internal boundaries and insulated niches.

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Journal Articles | 2021

Understanding digitally enabled complex networks: a plural granulation based hybrid community detection approach

Samrat Gupta and Swanand Deodhar

Information Technology & People

Purpose – Communities representing groups of agents with similar interests or functions are one of the essential features of complex networks. Finding communities in real-world networks is critical for analyzing complex systems in various areas ranging from collaborative information to political systems. Given the different characteristics of networks and the capability of community detection in handling a plethora of societal problems, community detection methods represent an emerging area of research. Contributing to this field, the authors propose a new community detection algorithm based on the hybridization of node and link granulation.

Design/methodology/approach – The proposed algorithm utilizes a rough set-theoretic concept called closure on networks. Initial sets are constructed by using neighborhood topology around the nodes as well as links and represented as two different categories of granules. Subsequently, the authors iteratively obtain the constrained closure of these sets. The authors use node mutuality and link mutuality as merging criteria for node and link granules, respectively, during the iterations. Finally, the constrained closure subsets of nodes and links are combined and refined using the Jaccard similarity coefficient and a local density function to obtain communities in a binary network.

Findings – Extensive experiments conducted on twelve real-world networks followed by a comparison with state-of-the-art methods demonstrate the viability and effectiveness of the proposed algorithm.

Research limitations/implications – The study also contributes to the ongoing effort related to the application of soft computing techniques to model complex systems. The extant literature has integrated a rough set-theoretic approach with a fuzzy granular model (Kundu and Pal, 2015) and spectral clustering (Huang and Xiao, 2012) for node-centric community detection in complex networks. In contributing to this stream of work, the proposed algorithm leverages the unexplored synergy between rough set theory, node granulation and link granulation in the context of complex networks. Combined with experiments of network datasets from various domains, the results indicate that the proposed algorithm can effectively reveal co-occurring disjoint, overlapping and nested communities without necessarily assigning each node to a community.

Practical implications – This study carries important practical implications for complex adaptive systems in business and management sciences, in which entities are increasingly getting organized into communities (Jacucciet al., 2006). The proposed community detection method can be used for network-based fraud detection by enabling experts to understand the formation and development of fraudulent setups with an active exchange of information and resources between the firms (Van Vlasselaer et al., 2017). Products and services are getting connected and mapped in every walk of life due to the emergence of a variety of interconnected devices, social networks and software applications.

Social implications – The proposed algorithm could be extended for community detection on customer trajectory patterns and design recommendation systems for online products and services (Ghose et al., 2019; Liu and Wang, 2017). In line with prior research, the proposed algorithm can aid companies in investigating the characteristics of implicit communities of bloggers or social media users for their services and products so as to identify peer influencers and conduct targeted marketing (Chau and Xu, 2012; De Matos et al., 2014; Zhang et al., 2016). The proposed algorithm can be used to understand the behavior of each group and the appropriate communication strategy for that group. For instance, a group using a specific language or following a specific account might benefit more from a particular piece of content than another group. The proposed algorithm can thus help in exploring the factors defining communities and confronting many reallife challenges.

Originality/value – This work is based on a theoretical argument that communities in networks are not only based on compatibility among nodes but also on the compatibility among links. Building up on the aforementioned argument, the authors propose a community detection method that considers the relationship among both the entities in a network (nodes and links) as opposed to traditional methods, which are predominantly based on relationships among nodes only.

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Journal Articles | 2021

Ground truthing the cost of achieving the EAT lancet recommended diets: Evidence from rural India

Soumya Gupta, Vidya Vemireddy, Dhiraj K. Singh, and Prabhu Pingali

Global Food Security

In this paper, we quantify the divergence in the cost of current diets as compared to EAT Lancet recommendations at the subnational-level in India. We use primary data on food prices and household food purchases, and secondary data on food expenditures for a period of 12 months in 2018–19. The cost of the EAT Lancet dietary recommendations for rural India ranges between $3.00- $5.00 per person per day. In contrast, actual dietary intake at present is valued at around $1.00 per person per day. In order to get to the EAT Lancet recommendations individuals will have to spend nearly $1.00 per person per day more on each of meat fish poultry, dairy foods and fruits. The deficit in current diets relative to recommendations is marked by seasonal variations driven by volatility in the underlying food prices. This paper extends the evidence base for the affordability of the EAT Lancet diet to a subnational-level in India, using the most recent data on prices and expenditures, over time. We highlight the need for tracking rural markets at the subnational level, over time for their nutritional quality and ability to provide affordable, nutritious diets to the poor. Crop diversification, investments in rural infrastructure and well-functioning markets can move rural India towards more nutrition sensitive food environments.

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