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.
| Original language | English (US) |
|---|---|
| Pages (from-to) | 1783-1793 |
| Number of pages | 11 |
| Journal | Production and Operations Management |
| Volume | 24 |
| Issue number | 11 |
| DOIs | |
| State | Published - Nov 1 2015 |
UN SDGs
This output contributes to the following UN Sustainable Development Goals (SDGs)
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SDG 9 Industry, Innovation, and Infrastructure
All Science Journal Classification (ASJC) codes
- Management Science and Operations Research
- Industrial and Manufacturing Engineering
- Management of Technology and Innovation
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