IEOR-DRO Seminar: Yehua Wei (Boston College)

December 5, 2017 | 1:10pm - 2:00pm

IEOR-DRO Seminar: Yehua Wei (Boston College)

Mudd Hall, 500 W. 120 St., New York, NY 10027 303
Title: Strategic Open Routing in Service Networks

Abstract: We study the behavior of strategic customers in an open-routing service network with multiple stations. When a customer enters the network, she is free to choose the sequence of stations that she visits, with the objective of minimizing her expected total system time. We propose a two-station game with all customers present at the start of service and deterministic service times, and we find that strategic customers herd, i.e., in equilibrium all customers choose the same route. For unobservable systems, we prove that the game is supermodular, and we then identify a broad class of learning rules - which includes both fictitious play and Cournot best-response - that converges to herding in finite time. By combining different theoretical and numerical analyses, we find that the herding behavior is prevalent in many other congested open-routing service networks, including those with arrivals over time, those with stochastic service times, and those with more than two stations. We also find that the system under herding performs very close to the first-best outcome in terms of cumulative system time
 
Bio: Yehua Wei is currently an Assistant Professor in the Operations Management Department at Boston College. He has received his PhD in Operations Research from MIT in 2013, and prior to Boston College, he was an Assistant Professor in the Decision Sciences area at Duke University. His research interest includes designing sparse resource pooling systems, supply chain risk mitigation, and strategic customers in queueing networks. His research has won a number of awards, including 2nd place of the 2011 George Nicholson Paper Competition, 2nd place of the 2013 CSAMSE Best Paper Competition, and the 2014 Daniel H. Wagner Prize for Excellence in Operations Research Practice.


500 W. 120th St., Mudd 315, New York, NY 10027    212-854-2942                 
©2014 Columbia University