Researchers created a mathematical model that helps transplant centers make decisions about when to move forward with a matching donor and when to wait. This work can potentially help decision making in other industries. Photo via Getty Images

To wait, or not to wait? That is the question — or at least it might be, if you need a kidney transplant.

Nearly 89,000 Americans with chronic kidney disease are on a waitlist for a new organ, and an estimated 13 people die each day while awaiting a transplant. But there are real costs to matching patients with the first donor that becomes available, just as there are equally real costs to having them wait in hopes of finding a better one.

Recently, Rice Business professor Süleyman Kerimov and colleagues at Stanford University and Northwestern University developed a mathematical model that helps clarify when it's best to match patients to donors as quickly as possible and when it's best to wait.

Their findings, which appear in two papers published in Management Science and Operations Research, respectively, could help optimize all manner of matching markets in which participants seek to connect with potential partners based on mutual compatibility — a sprawling category that encompasses everything from e-commerce platforms to labor markets that match employees with employers.

Kerimov and his colleagues focused on programs that match live kidney donors with people who need transplants. Live donors typically volunteer to give one of their kidneys to a loved one. But biological differences between a donor and their intended recipient can render the pair incompatible.

Kidney exchange programs solve this problem by swapping donors amongst different patient-donor pairs, choreographing a kind of kidney-transplant square dance aimed at finding a compatible partner for every willing donor.

In countries such as Canada and the Netherlands, kidney-matching programs perform a batch of matches every few months (called periodic policies). American programs, meanwhile, tend to perform daily matches (called greedy policies). Both models seek to produce the greatest number of high-quality transplants possible, but they each have advantages and disadvantages.

Less frequent matches in a periodic policy allow more patient-donor pairs to accumulate in the kidney exchange network, creating potential for better matches over time. But this approach risks making some patients sicker as they wait for a better match that might never appear.

Arranging feasible matches as soon as they become available in a greedy policy avoids that predicament. But it means passing up the opportunity to make a potentially better match that could represent the possibility of a longer, healthier life.

Balancing these trade-offs is tricky. There is no way of predicting precisely when a patient-donor pair with a particular set of characteristics will show up at the kidney-exchange network. And in the world of organ transplants, there are no do-overs.

Kerimov and his colleagues have constructed a mathematical model that represents a simplified version of a kidney exchange network.

Within the model, the researchers could dictate which patient-donor pairs could be matched with one another. They can also assign different values to individual matches based on the number of life years they provide. And they can establish the probability that various kinds of patient-donor pairs with particular characteristics might arrive at the network and queue up for a transplant at any given time.

Having set those parameters, the researchers applied different matching policies and compared the results. As it turns out, the answer to whether one should wait or not is: It depends.

To determine which policies generated the best outcomes — i.e., performing matches either daily or periodically — the researchers calculated the difference between the total value in life years that could possibly be generated within the network and the amount generated by a specific policy at a particular point in time. The goal was to keep that number, evocatively dubbed "all-time regret," as small as possible over both the short and long term.

In their first paper, Kerimov and his team explored a complex network in which donor kidneys could be swapped amongst three or more patient-donor pairs. When such multiway matches were possible, the cost of applying a daily-match policy turned out to be onerous. Using all available matches as quickly as possible eliminated the chance of later performing potentially higher-value matches.

Instead, the researchers found they could minimize regret by applying a periodic policy that required waiting for a certain number of patient-donor pairs to arrive before attempting to match them. The model even allowed the team to calculate precisely how long to wait between matchmaking sessions to get the best possible results.

In their second paper, however, the team looked at a simpler network in which kidneys could only be swapped between two donor-patient pairs. Here, their findings contradicted the first: Applying a daily-match policy minimized regret; a periodic matching process yielded no benefit whatsoever.

To their surprise, the researchers discovered they could design a foolproof algorithm for making two-way matches in simple networks. The algorithm employed a ranked list of possible match types; and the researchers found that no matter how many patient-donor pairs of various kinds randomly arrived at the network, the best choice was always simply to perform the highest-ranked match on the list.

In future research, Kerimov hopes to refine the model by feeding it data on real patient-donor pairs that have participated in actual kidney exchange programs. This would allow him to create a more realistic network, more accurately calculate the likelihood that particular kinds of patient-donor pairs will show up, and assign values to matches based not only on life years but also on rarity and difficulty. (Certain blood types and antibody profiles, for example, are rarer or more difficult to match than others.)

But Kerimov already suspects that in a real-world situation, the wisest course of action will be to alternate between periodic and greedy policies as circumstances dictate. In a simple region within a kidney exchange network that only allows for two-way matches, pursuing a greedy policy that involves taking the first match that appears on a fixed menu of options would be the best choice. In a more complex region that allows three-way matches, however, pursuing a periodic matching policy that involves waiting to make rarer and more difficult matches would ultimately offer more patients more years of healthy life.

The benefits of choosing flexibly between greedy and periodic policies should hold for any kind of matching market that can be represented by a network with simpler and more complex regions, such as a logistics system that matches online orders to delivery trucks or a carpooling system that matches passengers with drivers across different parts of a city.

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This article originally ran on Rice Business Wisdom and was based on research from Süleyman Kerimov, an assistant professor of management – operations management in the Jones Graduate School of Business at Rice University.

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17 Houston entrepreneurs named finalists in annual regional competition

on to the next round

Entrepreneurs from the Houston area have been named finalists for one of the region’s most prestigious business awards.

The 17 finalists are competing for Ernst & Young’s Entrepreneur Of The Year 2024 Gulf South Award. The Gulf South region includes parts of Texas, along with Louisiana and Mississippi.

An independent panel of judges selected the 48 finalists. Contenders were evaluated based on their demonstration of building long-term value through factors such as entrepreneurial spirit, purpose, growth, and impact.

The Houston-area finalists are:

  • Shannon Payne, Allied Fire Protection, Pearland
  • Jay McEntire IV, Arva Intelligence, Houston
  • Andrew Levy, Avelo Airlines, Houston
  • Derek Maetzold, Castle Biosciences, Friendswood
  • Scott Aronstein, Connectivity Source, Houston
  • Joshua Weisman, Construction Concepts, Houston
  • Feras Moussa and Ben Suttles, Disrupt Equity, Houston
  • John Poindexter, J.B. Poindexter, Houston
  • James Ross, LJA Engineering, Houston
  • Asher Kazmann, Locke Solutions, Houston
  • Chad Millis, Millis, Missouri City
  • Mike Francis, NanoTech Materials, Houston
  • Stuart Hinchen and Peter Jenkins, Quva Pharma, Sugar Land
  • Trevor Best and Suman Khatiwada, Syzygy Plasmonics, Houston
  • Hal Brumfield, Tachus Fiber Internet, The Woodlands
  • Jared Boudreaux, Vector Controls and Automation Group, Pearland
  • Ting Qiao, Wan Bridge, Houston

“The finalists of this year are audacious entrepreneurs who are making a significant impact in their respective industries and communities,” says Anna Horndahl, an EY partner and co-director of the EOY Gulf South Program.

“These pioneers, chosen by an independent panel of judges, showcase relentless commitment to their businesses, customers and communities. We are thrilled to acknowledge their accomplishments,” adds Travis Garms, an EY partner and co-director of the EOY Gulf South Program.

Houston makes top 10 list of metros with most millionaires

living large

Anew population analysis has unveiled an exclusive view into how the elite live in the U.S., including a surprising discovery that Houston-The Woodlands-Sugar Land has the No. 9 highest concentration of millionaire households in the country.

The study by online real estate marketplace Point2Homes compared household data among millionaires in the 30 biggest U.S. metropolitan areas, including four Texas metros, between 2017 and 2022.

The report found that the number of U.S. households that earned at least $1 million a year more than quadruped within the five-year period, with the highest concentration of millionaire households located in the New York-Newark-Jersey City area across New York, New Jersey, and Pennsylvania.

There are just under 2,900 millionaire homeowners living across the Houston metro, making up 0.11 percent of all households in the area. The report revealed a majority (32.9 percent) of millionaires in Houston are actually Gen Xers, with the second highest share going to baby boomers (28.9 percent).

Most interestingly, the youngest generation, Gen Z, make up 15.4 percent of all millionaire households in Houston, with millennials making up 21.5 percent, according to the report. But the Gen Z percentage is misleading; as the report clarifies, there aren't actually that many Gen Z millionaires walking among us in H-Town.

"Instead, this high share is most likely almost entirely due to the people aged 15 to 24 who are still living with their (millionaire) owner parents," the report explained. "Unfortunately, living in a millionaire owner household does not a millionaire owner make — but it does come with some serious perks."

Physicians make up Houston-The Woodlands-Sugar Land millionaires' main occupations across all age groups, the study also found.

This is how Houston's millionaires live
The saying goes, "Go big or go home," and Houston's millionaire homeowners are taking that to heart when it comes to their own lavish households.

The report discovered the typical home owned by a millionaire in Houston-The Woodlands-Sugar Land is a five bedroom, nine total-room house, with an average assessed value of $1,466,682. As for wheels, a Houston-based millionaire is likely to have less than three vehicles (2.8) on average.

By comparison, the average value for a millionaire homeowner's abode in San Francisco-Oakland-Berkeley, California is $2,816,196, the highest amount out of all 30 U.S. metros in the report.

Big, expensive homes don't come without big costs to maintain them, the report reminds. And when it comes to managing finances for wealthy earners, making more money doesn't necessarily mean they'll be saving that income.

"Rather, it just means bigger homes with bigger mortgages and maintenance expenses; more cars; much costlier schools; and more over-the-top lifestyles, which simply bite bigger chunks out of the family's big budget," the report said. "However, despite the 'risks,' most of us would probably choose to have rich people problems. Or, as the saying goes, crying in a Ferrari might just feel better than crying in a Toyota when all is said and done."

Millionaire lifestyles across Texas
In a comparison of all Texas metro areas, Houston-The Woodlands-Sugar Land claimed the highest share of millionaire homeowners statewide. Dallas-Fort Worth-Arlington took the No. 2 spot, while Austin-Round Rock-Georgetown rounded out the top three. San Antonio-New Braunfels took No. 4 in the statewide analysis.

Dallas-Fort Worth-Arlington was right behind Houston in the national standings, ranking No. 10, with nearly 2,650 millionaire households situated in the Metroplex. DFW's millionaires are mainly chief executives and legislators, or physicians. Gen Xers (44.1 percent) make up the highest share of the metro's millionaires, with baby boomers (24.7 percent) not too far behind.

Austin-Round Rock-Georgetown, however, fell to No. 24 in the national ranking with only 749 millionaire households calling the Texas Capital home. Austin's millionaires are mainly chief executives and legislators, or other types of high-level mangers. Gen Xers (34.9 percent) make up the highest share of the metro's millionaires, with millennials (30.8 percent) not too far behind.

San Antonio-New Braunfels ranked at the bottom of the study at No. 29, above Pittsburgh, Pennsylvania. There were only 414 millionaire households in the metro area between 2017-2022, and a majority of them (38.4 percent) were Gen X physicians.

The top 10 metros with the highest share of millionaires in the U.S. are:

  • No. 1 – New York-Newark-New Jersey City, New York-New Jersey-Pennsylvania
  • No. 2 – Los Angeles-Long Beach-Anaheim, California
  • No. 3 – San Francisco-Oakland-Berkeley, California
  • No. 4 – Boston-Cambridge-Newton, Massachusetts-New Hampshire
  • No. 5 – Washington-Arlington-Alexandria, D.C.-Virginia-Marland-West Virginia
  • No. 6 – Chicago-Naperville-Elgin, Illinois-Indiana-Wisconsin
  • No. 7 – Miami-Fort Lauderdale-Pompano Beach, Florida
  • No. 8 – Seattle-Tacoma-Bellevue, Washington
  • No. 9 – Houston-The Woodlands-Sugar Land, Texas
  • No. 10 – Dallas-Fort Worth-Arlington, Texas

The full report and its methodology can be found on point2homes.com.

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This article originally ran on CultureMap.