Inefficiencies in Digital Advertising Markets

Digital advertising markets are growing and attracting increased scrutiny. This article explores four market inefficiencies that remain poorly understood: ad effect measurement, frictions between and within advertising channel members, ad blocking, and ad fraud. Although these topics are not unique to digital advertising, each manifests in unique ways in markets for digital ads. The authors identify relevant findings in the academic literature, recent developments in practice, and promising topics for future research

Using data from connected thermostats to track large power outages in the United States

The detection of power outages is an essential activity for electric utilities. A large, national dataset of Internet-connected thermostats was used to explore and illustrate the ability of Internet-connected devices to geospatially track outages caused by hurricanes and other major weather events. The method was applied to nine major outage events, including hurricanes and windstorms. In one event, Hurricane Irma, a network of about 1000 thermostats provided quantitatively similar results to detailed utility data with respect to the number of homes without power and identification of the most severely affected regions. The method generated regionally uniform outage data that would give emergency authorities additional visibility into the scope and magnitude of outages. The network of thermostat-sensors also made it possible to calculate a higher resolution version of outage duration (or SAIDI) at a level of customer-level visibility that was not previously available

Innovation and the Interrelatedness of Core Competencies: How Taiwan's Giant Bicycles broke into the US Bicycle Market

I argue that capabilities and barriers to entry are, in certain circumstances, interconnected in such a way that sacrificing one of them can lead to the subsequent vulnerability or erosion of another capability or barrier to entry. I illustrate this through a study of the US bicycle market in the 1980's in general, and Schwinn Corporation and Giant Manufacturing in particular, arguing that both the barriers to entry and the firm capabilities were interrelated. A specific set of decisions by Schwinn had broad and unanticipated effects that went beyond the capacity they explicitly relinquished. In this case manufacturing and distribution were tightly linked in such a way that without some form of tight link between them successful incremental innovation became difficult. Seemingly unrelated capabilities and strengths become mutually reinforcing or interconnected. Instead of being able to choose to add a single capability, or choose to discard one, companies may instead be choosing between sets, groups of interlinked, or patterned capabilities. A seemingly small change may require a major reorganization of other core capabilities that its ostensible status belies.international strategy, outsourcing, capabilities, barriers to entry

Biases in human behavior

The paper shows that biases in individual’s decision-making may result from the process of mental editing by which subjects produce a “representation” of the decision problem. During this process, individuals make systematic use of default classifications in order to reduce the short-term memory load and the complexity of symbolic manipulation. The result is the construction of an imperfect mental representation of the problem that nevertheless has the advantage of being simple, and yielding “satisficing” decisions. The imperfection origins in a trade-off that exists between the simplicity of representation of a strategy and his efficiency. To obtain simplicity, the strategy’s rules have to be memorized and represented with some degree of abstraction, that allow to drastically reduce their number. Raising the level of abstraction with which a strategy’s rule is represented, means to extend the domain of validity of the rule beyond the field in which the rule has been experimented, and may therefore induce to include unintentionally domains in which the rule is inefficient. Therefore the rise of errors in the mental representation of a problem may be the "natural" effect of the categorization and the identification of the building blocks of a strategy. The biases may be persistent and give rise to lock-in effect, in which individuals remain trapped in sub-optimal strategies, as it is proved by experimental results on stability of sub-optimal strategies in games like Target The Two. To understand why sub-optimal strategies, that embody errors, are locally stable, i.e. cannot be improved by small changes in the rules, it is considered Kauffman’ NK model, because, among other properties, it shows that if there are interdependencies among the rules of a system, than the system admits many sub-optimal solutions that are locally stable, i.e. cannot be improved by simple mutations. But the fitness function in NK model is a random one, while in our context it is more reasonable to define the fitness of a strategy as efficiency of the program. If we introduce this kind of fitness, then the stability properties of the NK model do not hold any longer: the paper shows that while the elementary statements of a strategy are interdependent, it is possible to achieve an optimal configuration of the strategy via mutations and in consequence the sub-optimal solutions are not locally stable under mutations. The paper therefore provides a different explanation of the existence and stability of suboptimal strategies, based on the difficulty to redefine the sub-problems that constitute the building blocks of the problem’s representation

Industry Evolution in Developing Countries: the Indonesian Pulp and Paper Industry

Industry, evolution, developing countries, Indonesia, industry

Improving the Accuracy and Scope of Control-Oriented Vapor Compression Cycle System Models

The benefits of applying advanced control techniques to vapor compression cycle systems are well know. The main advantages are improved performance and efficiency, the achievement of which brings both economic and environmental gains. One of the most significant hurdles to the practical application of advanced control techniques is the development of a dynamic system level model that is both accurate and mathematically tractable. Previous efforts in control-oriented modeling have produced a class of heat exchanger models known as moving-boundary models. When combined with mass flow device models, these moving-boundary models provide an excellent framework for both dynamic analysis and control design. This thesis contains the results of research carried out to increase both the accuracy and scope of these system level models. The improvements to the existing vapor compression cycle models are carried out through the application of various modeling techniques, some static and some dynamic, some data-based and some physics-based. Semiempirical static modeling techniques are used to increase the accuracy of both heat exchangers and mass flow devices over a wide range of operating conditions. Dynamic modeling techniques are used both to derive new component models that are essential to the simulation of very common vapor compression cycle systems and to improve the accuracy of the existing compressor model. A new heat exchanger model that accounts for the effects of moisture in the air is presented. All of these model improvements and additions are unified to create a simple but accurate system level model with a wide range of application. Extensive model validation results are presented, providing both qualitative and quantitative evaluation of the new models and model improvements.Air Conditioning and Refrigeration Project 17

Data Mining on the Crawl Frontier: Metaphor in Cybernetic Capitalism

This essay explores how the intangible operations of networked computing-machines are frequently described through tangible metaphors. After looking at their origins in military bureaucracies, this analysis steps through the material operations of Google’s famous search-engine, noting the various metaphors that are used to make sense of it, and the way they frequently draw on colonial and extractive imagery. I give an account of the company’s rise to power, emphasising how their immense profits became possible because of their control of intellectual property rights, as well as over the ‘terms and conditions’. Across this critical analysis, I show how these metaphors embody the dominant worldview of cybernetic capitalism and demonstrate how they serve as ways to cope with the extreme abstractions increasingly enmesh us