The expectation-based loss-averse newsvendor
نویسندگان
چکیده
منابع مشابه
Newsvendor Selling to Loss-Averse Consumers with Stochastic Reference Points
We study a newsvendor who sells a perishable asset over repeated sales seasons to loss averse consumers. We identify conditions under which the expected price can be increasing in the consumer loss aversion level, and numerically show that the firm can prefer low and moderate levels of demand variability over no demand uncertainty. Moreover, we obtain a set of counterintuitive insights on how c...
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Newsvendor problem is a fundamental singleitem inventory problem with stochastic demands over a single period. In the traditional newsvendor model, the expected utility theory is introduced to measure the risk attitude of decision-maker. However, behavior of decisionmaker for many practical problems cannot be explained with the expected utility theory. As a result, prospect theory of the behavi...
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ژورنال
عنوان ژورنال: Economics Letters
سال: 2013
ISSN: 0165-1765
DOI: 10.1016/j.econlet.2013.05.035