Decision Science Digest: June 28, 2022

BALTIMORE, MD, June 28, 2022 –

EDITOR’S NOTE: Decision Science Digest is a periodic communique highlighting recent peer-reviewed research published by INFORMS, the largest association for the decision and data sciences, across its 17 journals. This issue highlights four press releases based on the findings of new peer-reviewed articles.

• New Optimization Algorithm Increases Online Dating Site Matches by 27% by Factoring in Past and Present User Preferences (INFORMS journal Manufacturing & Service Operations Management)
• Environmental Issues Encourage Better Habits from Manufacturing Facilities in Texas (INFORMS journal Management Science)
• Adopting Mass Customization, in Addition to Mass Production Methods, Can Generate a Win-Win for Sustainability in Fashion (INFORMS journal Manufacturing & Service Operations Management)
• Startling Racial Discrepancies in Obtaining Capital for Minority-Owned Startups (INFORMS journal Management Science)

New Research Increases Probability of Online Dating Matches by More Than 25%

Increasing match rates is a hot topic in online dating platforms. New research in the INFORMS journal Manufacturing & Service Operations Management provides insights into how to leverage users’ preferences and behavior to achieve more matches. Partnering with a major online dating company in the United States, the researchers construct an algorithm to estimate the users’ preferences and the causal effect of previous matches on the “like” behavior of users as well as other parameters of interest. Utilizing this algorithm in real-world settings, the results show at least 27% more matches compared to those not using the algorithm. The researchers say it’s essential to correctly account for the preferences, behavior and activity metrics of users on both ends of a match to improve efficiency. Link to full article.

New Research Finds Water Scarcity Compels Manufacturing Facilities to be More Environmentally Friendly

Manufacturing operations can affect the environment, but can the natural environment shape manufacturing operations? New research in the INFORMS journal Management Science says yes! The authors look at the influence of water scarcity, which results from environmental conditions, on manufacturing firms lowering their toxic releases to the environment. They looked at data from 2000 to 2016 that included details on the toxic emissions of 3,092 manufacturing facilities in Texas as well as measures of the water scarcity experienced by these facilities. The data show that manufacturing facilities reduce their toxic releases into the environment when they have experienced drought conditions in the previous year. The authors examine facilities that release toxics to water as well as facilities with no toxic releases to water and find the reduction in total releases is driven by those facilities that release toxic chemicals to water. Link to full article.

New Research Finds Sustainability in Fashion Doesn’t Have to Come at a Cost

New research in the INFORMS journal Manufacturing & Service Operations Management finds a rare win-win solution for sustainability in fashion. Researchers find that adopting mass customization (MC) can be a win-win by making it more bearable to wait for customized products to be made and delivered by charging a disposal fee for overproduction, and recycling excess inventory (unsold items) and used items. Higher product value favors a win-win outcome from MC adoption. Luxury fashion, for example, is ripe for sustainable MC adoption. This work shows that mass customization can be an antidote to sustainability woes that the fashion industry is currently facing. Link to full article.

New Research Finds Discrepancies in Available Capital for Startups

New research in the INFORMS journal Management Science identifies equality issues within available capital for startups. The authors used confidential and restricted-access data from the Kauffman Firm Survey and matched administrative data on credit scores to explore racial disparities in access to capital for new business ventures. The results show that Black-owned startups start smaller and stay smaller over the first eight years of their existence. Black-owned startups also face more difficulty in raising external capital, especially external debt. The researchers find that disparities in creditworthiness constrain Black entrepreneurs, but perceptions of treatment by banks also hold them back. Black entrepreneurs apply for loans less often than their white counterparts largely because they expect to be denied credit, even when they have a good credit history and in settings where strong local banks favor new business development. Link to full article.