Journal article
How to Compete Against a Behavioral Newsvendor
Production and operations management, Vol.24(11), pp.1783-1793
11/2015
DOI: 10.1111/poms.12361
Abstract
We investigate newsvendor ordering behavior under competition. We present a laboratory experiment that documents the behavioral ordering regularities in competitive newsvendor environments, and an analytical model extending the standard theory of newsvendor competition by including an optimal best-response policy for competing with a behaviorally biased newsvendor. We test the effectiveness of this policy using an out-of-sample experiment and find that it results in improved market share, service level and profitability.
Details
- Title: Subtitle
- How to Compete Against a Behavioral Newsvendor
- Creators
- Anton Ovchinnikov - Queens Sch Business, Kingston, ON K7L 3N6, CanadaBrent Moritz - Pennsylvania State UniversityBernardo F. Quiroga - Pennsylvania State University
- Resource Type
- Journal article
- Publication Details
- Production and operations management, Vol.24(11), pp.1783-1793
- DOI
- 10.1111/poms.12361
- ISSN
- 1059-1478
- eISSN
- 1937-5956
- Publisher
- Wiley
- Number of pages
- 11
- Grant note
- Smeal College of Business at Penn State
- Language
- English
- Date published
- 11/2015
- Academic Unit
- Business Analytics
- Record Identifier
- 9985219852902771
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