Behavioral operations research has proliferated greatly over the decade since its first formal review in 2006. The growth of the field warrants an objective mapping of contributions to the literature and the identification of trends. We conduct a systematic review of the literature of behavioral operations and supply chain management (BOSCM) across eight key operations and supply chain management journals, with publication dates through the end of June 2018. Collected articles are categorized into 12 operations contexts as well as emerging topic considerations. Key research trends, theoretical foundations, and methodological choices are discussed in each context. The results show that supply chain management, inventory management, and procurement/auctions have been the most popular operations contexts for BOSCM researchers. The results of our co-citation analysis shows that the fundamental research areas that have informed and shaped the field include supply chain risk management, marketing, cognitive psychology, and social psychology. Based on these findings and a survey of the most prolific authors in the field, we discuss possible avenues for future research.

Behavioral Operations and Supply Chain Management–A Review and Literature Mapping

Elements of paradoxes in supply chain management literature: A systematic literature review

The Braess paradox describes the counterintuitive situation that the addition of new roads to road networks can lead to higher travel times for all network users. Recently we could show that user optima leading to the paradox exist in networks of microscopic transport models. We derived phase diagrams for two kinds of route choice strategies that were externally tuned and applied by all network users. Here we address the question whether these user optima are still realized if intelligent route choice decisions are made based upon two kinds of traffic information. We find that the paradox still can occur if the drivers 1) make informed decisions based on their own past experiences or 2) use traffic information similar to that provided by modern navigation apps. This indicates that modern traffic information systems are not able to resolve Braess' paradox.

Braess' paradox in the age of traffic information.

In a transportation system with multiple equilibria, coordination failure occurs when a group of travelers could achieve the efficient equilibrium but fail because they cannot coordinate their decision‐making under strategic uncertainty. This study investigated factors that might affect coordination behavior in mode choice with both positive and negative externalities. Subjects participated in a mode‐choice game in which they were required to choose between public transport and private car. Positive or negative externalities occurred when subjects chose public transport or private car, respectively, thereby generating two pure‐strategy equilibria in the mode‐choice game. The experimental results indicated that (i) the transparency of descriptive information facilitated not only the convergence to the efficient equilibrium but also the stabilization of choice behavior, (ii) historical experiences of converging to the inefficient equilibrium could affect subjects' initial choices and even equilibrium selection, and (iii) a “higher” barrier between the two equilibria impeded and prolonged the transformation from the inefficient equilibrium to the efficient equilibrium, and a “deeper” attraction basin of the efficient equilibrium was more attractive in equilibrium selection.

Coordination Behavior in Mode Choice: Laboratory Study of Equilibrium Transformation and Selection

This paper examines the travelers’ day-to-day route-choice behavior with Advanced Traveler Information Systems (ATIS) through laboratory-like experimental method. Five groups of route-choice behavior experiments are designed to simulate actual daily behavior of travelers. In the experiment, subjects are provided with different levels of the complete road network information to simulate the proportion of subjects equipped with ATIS equipment (i.e., ATIS market penetration) and choose the routes repeatedly. The subject’s route-choice behavior under different proportions of complete road network information is analyzed, and the strategy of releasing such complete information is determined when the performance of road network system is the best. The Braess network which consists of three routes was used in the experiment and analysis. The results show that the fluctuation of traffic flow runs through the entire experiments, but it tends to converge to user equilibrium. When the market penetration is 75%, both the fluctuation of traffic flow and the tendency of subjects to change routes are the smallest, so the road network system is the most stable. This interesting result indicates that releasing traffic information to all travelers is not the best. Other results show that the travel times of the three routes in the five groups of experiments tend to converge to and finally fluctuate around user-equilibrium travel time. With the increase in ATIS market penetration, the average travel time of subjects in each round tends to increase. The overall trend of the five groups of experiments is that as the number of route switches increases, the average travel time increases. The results also indicate that releasing traffic information to all travelers cannot weaken the Braess Paradox. On the contrary, the more travelers are provided with traffic information, the less likely it will weaken the Braess Paradox.

/pdf/experimental-study-of-day-to-day-route-choice-behavior-3aukat4yta.pdf

Experimental Study of Day-to-Day Route-Choice Behavior: Evaluating the Effect of ATIS Market Penetration

Within the last decade, there has been a dramatic bloom in ridesharing businesses along with the emergence of new enabling technologies. A central issue in ridesharing, which is also important in the general domain of cost-sharing in economics and computer science, is that the sharing of cost implies positive externalities and hence coordination problems for the network users. We investigate these problems experimentally in the present study. In particular, we focus on how sequential observability of transportation mode choices can be a powerful facilitator of coordination in ridesharing. Our study abstracts the essential issues of coordination in ridesharing into a directed network game with experimentally testable predictions. In line with the theoretical analysis, our experimental evidence shows that even a limited extent of sequential choice observability might lead to efficient coordination. However, convergence to efficiency is slower with more limited observability, resulting in a significant increase in travel cost.

/pdf/a-network-ridesharing-experiment-with-sequential-choice-of-4e8tlo5okz.pdf

A network ridesharing experiment with sequential choice of transportation mode

The Braess Paradox (BP) illustrates an important counterintuitive observation that adding links to a directed transportation network with usage externalities may raise the costs of all users. Research on the BP traditionally focuses on congestible networks. We propose and experimentally test a new and more dramatic version of the BP, where the network exhibits both congestion (negative externalities) and costâ€ sharing (positive externalities) characteristics. Our design also involves experimental manipulation of choice observability, where players choose routes simultaneously in one condition and sequentially in the other. We report robust behavioral evidence of the BP in both conditions. In nine of 10 sessions in the basic network, subjects coordinated successfully to achieve the welfareâ€ maximizing equilibrium. But once the network was augmented with a new link, coordination failure resulted in a major proportion of subjects switching to a new route, resulting in a 37% average increase in individual travel cost across conditions.

The Braess Paradox and Coordination Failure in Directed Networks with Mixed Externalities

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A network ridesharing experiment with sequential choice of transportation mode

The Braess Paradox and Coordination Failure in Directed Networks with Mixed Externalities