The Benefit of Information Asymmetry: When to Sell to Informed Customers?
Decision Support Systems, 2012
Buyers are often uncertain about product valuations before they commit to purchase. In such situations, firms have an opportunity to influence the accuracy with which buyers can estimate their valuations. When buyers are uncertain about the product’s fit with their personal preferences, firms can help resolve this uncertainty by offering product previews, sampling, trials or return guarantees.
Professor Andrew Hargadon researches and teaches on innovation and entrepreneurship. He describes how he draws from theory and experience to help students figure out how to be successful. “Our MBAs get first-hand glimpses into some of the cutting-edge research happening, and the challenge of trying to figure out the best way to move those ideas out of the laboratory and into the market.”
How Breakthroughs Happen:
The Surprising Truth About How Companies Innovate
Harvard Business Review Press, 2003
Did you know that the incandescent lightbulb first emerged some thirty years before Thomas Edison famously ‘turned night into day’? Or that Henry Ford’s revolutionary assembly line came from an unlikely blend of observations from Singer sewing machines, meatpacking, and Campbell’s Soup?
In this fascinating study of innovation, engineer and social scientist Andrew Hargadon argues that our romantic notions about innovation as invention are actually undermining our ability to pursue breakthrough innovations.
Computational Modeling and Problem Solving in the Networked World: Interfaces in Computer Science and Operations Research
Edited by Professor Hemant Bhargava and co-editor Nong Ye of Arizona State University, the first section of Computational Modeling and Problem Solving in the Networked World, “Perspectives on Computation,” focuses on the reflective and integrative thinking that is critical to contemporary science. This section presents philosophical perspectives on computation, covering a variety of traditional and newer modeling, solving, and explaining mathematical models.
The “Machine Learning & Heuristics” section includes articles that study machine learning and computational heuristics, and is followed by the “Algorithm Performance” section that addresses issues in performance testing of solution algorithms and heuristics. These two sections demonstrate the richness of thinking about solution methods that is made possible by the confluence of Computer Science and Operations Research.
Research Expertise: Corporate strategy, technology management, global strategy, budget control models, strategic planning, ethics
Research Expertise: Entrepreneurship, innovation, nonprofits, new ventures, technology management, venture capital
Professor Emeritus Richard Dorf researches and has taught entrepreneurship, innovation management, management of nonprofits, new venture management, venture capital management, and technology policy and technology management. He is a consultant in engineering project development, commercialization, innovation, management and new business ventures. He has taught courses in New and Small Business Ventures, and Sustainable and Responsible Business.
Research Expertise: The effective management of innovation and entrepreneurship, particularly in the development and commercialization of sustainable technologies
Professor Andrew Hargadon has written extensively on knowledge and technology brokering and the role of learning and knowledge management in innovation.
Research Expertise: Technology management, management information systems, economics of information technology industry, pricing and product design decisions, management decision technologies
Professor Hemant Bhargava is an expert in technology management and the information technology industry. He also studies the use of IT in clinical health care, and has previously worked on data-driven and analytical decision making in organizations.
In this article, Professor Andrew Hargadon argues that the selection of policy analogues (old bottles) into which we fit our (still hotly contested) climate change policy objectives (new wine) asks a particularly and immediately appropriate set of questions.
High-tech start-ups, especially those in the energy sector and clean tech—and researchers who want to get their ideas out of the lab and into the market—have a valuable new resource for turning their entrepreneurial ideas into profitable realities.
In an effort to boost employment, promote cleaner, more sustainable sources of energy, and give the U.S. a global competitive advantage, governors across the nation are looking to implement policies that spur clean tech innovation.
In February, Professor Andrew Hargadon, director of the UC Davis Center for Entrepreneurship, participated in “Spurring Business Start-ups and Innovation in Clean Technology,” a National Governors’ Association Center for Best Practices Webcast co-sponsored by the Kauffman Foundation.
Established in 2006, with a challenge grant from the California Clean Energy Fund and Professor Andrew Hargadon as founding director, the UC Davis Energy Efficiency Center (EEC) is the first university-based organization to focus on the transfer of energy saving technology into the marketplace.
On the 10th anniverary of the founding of Google, ANALYST, the flagship publication of the Institute for Chartered Financial Analysts of India, published in its November issue an interview with Professor Hemant Bhargava about the search engine giant’s business and its “phenomenal rise” as one of the most recognized brands in the world.
Andrew Hargadon, Associate Professor and faculty director of the UC Davis Center for Entrepreneurship, delivered the closing keynote address at National Instrument’s NIWeek 2008 in Austin, Tex., in August. The three-day event is the world’s leading graphical system design conference and exhibition. It brings together more than more than 3,000 engineers, scientists, educators and developers for interactive technical sessions, exhibitions and workshops on the latest technologies for control design, measurement, automation, manufacturing and testing.
Pricing Under Quality of Service Uncertainty: Market Segmentation via Statistical QoS Guarantees
European Journal of Operational Research, 2008
This article by Professor Hemant Bhargava and co-author Daewon Sun at the University of Notre Dame examines how performance-contingent pricing schemes with long-term statistical performance guarantees can be applied to many IT services. The authors study two forms of performance-contingent pricing, with rebate proportional to failure rate and fixed rebate for below-threshold performance. The study shows that threshold-performance contingency pricing can increase both profits and fairness (customers who receive higher benefits pay higher effective price) relative to standard pricing.
Associate Professor Andrew Hargadon and Alan Meier, a senior scientist at Lawrence Berkeley National Laboratory—both of whom are associate directors of the UC Davis Energy Efficiency Center—were awarded a $10,000 grant from the Industry-University Cooperative Research Program and received matching funds from the California Clean Energy Fund to host the Energy Efficiency Technology Impact Summit at UC Davis on February 13.
Every fall and winter college campuses are visited by high school juniors and seniors and their travel-weary parents in search of the best college fit. Students and parents spend a great deal of time and money making these treks, which can often lead to disappointment if there is not a perfect match.
This paper by Professor Hemant Bhargava and Vidyanand Choudhary from UC Irvine provides insights about when versioning is an optimal strategy for information goods. The authors’ characterization of this class of goods is that variable costs are invariant with quality, including the special case of zero variable costs. This paper’s analysis assumes a monopoly firm that has an existing product in the market and has an opportunity to segment the market by introducing additional lower-quality versions.
Faculty Research Fall 2007/Winter 2008
Demand for Soft Skills to Grow
In October Professor Hemant Bhargava presented a talk titled “Economics of Information Structure: Timing the Sale when Buyers Have Uncertain Product Valuations,” at the Center for Information Technology Research in the Interest of Society (CITRIS) at UC Berkeley.
World Wide Web technologies have transformed the design, development, implementation and deployment of decision support systems. This article by Professor Hemant Bhargava and co-authors Daniel Power of the University of Northern Iowa and Daewon Sun of the University of Notre Dame reviews and summarizes recent technology developments, current usage of Web-based DSS, and trends in the deployment of such systems.
Implementing Sponsored Search in Web Search Engines: Computational Evaluation of Alternative Mechanisms
INFORMS Journal on Computing, 2007
The practice of sponsored search advertising—where advertisers pay a fee to appear alongside particular Web search results—is now one of the largest and fastest growing source of revenue for Web search engines. In this paper, Professor Hemant Bhargava and co-authors Juan Feng of the University of Florida and David M. Pennock of Yahoo, Inc. model and compare several mechanisms for allocating sponsored slots, including stylized versions of those used by Overture and Google, the two biggest brokers of sponsored search.
Stockout Compensation: Joint Inventory and Price Optimization in Electronic Retailing
INFORMS Journal on Computing, 2006
Delays in product availability are common in e-commerce where electronic retailers try to manage with very low inventories. While this lowers inventory costs, the negative effect of increased stockouts is to reduce net demand for the product. in this paper, Professor Hemant Bhargava and co-authors Daewon Sun of the University of Notre Dame and Susan H.
This by Professor Hemant Bhargava and his co-authors specifies an efficient numerical scheme for computing optimal dynamic prices in a setting where the demand in a given period depends on the price in that period, cumulative sales up to the current period, and remaining market potential. The problem is studied in a deterministic and monopolistic context with a general form of the demand function.
America OnLine’s Internet Access Service: How to Deter Unwanted Customers
Electronic Commerce Research and Applications, 2005
Some dial-up Internet access providers, such as the market leader America OnLine (AOL), require customers to install proprietary connection software to use their service. This is puzzling, because while the software helps certain users, it creates disutility for others (especially expert users and early adopters of Internet service). Why, then, does AOL insist on this connection manager? Why not also offer a standardized service with Internet access and AOL-managed service to the power users?
Computing as Utility: Managing Availability, Commitment, and Pricing Through Contingent Bid Auctions
Journal of Management Information Systems, 2004
Enabled by advances in grid and network computing architectures for the delivery of on-demand computing services, the vision of an e-services economy in which computing will be as ubiquitous as a utility is becoming a possibility in business computing. The successful introduction of these new computing models requires the development of appropriate pricing mechanisms that are consistent with the enabling technologies.
The United States Marine Corps (USMC) accomplishes its mission “to put the right Marine in the right place at the right time with the right skills and quality of life” in various ways. One of these is a recruit distribution modeling (RDM) and information system that assigns new recruits to entry-level schools, thereby determining the entire career paths.