Record Details

Newsvendor Problem Experiments: Riskiness of the Decisions and Learning by Experience

International Journal of Business and Social Research

View Archive Info
 
 
Field Value
 
ISSN 2164-2559
2164-2540
 
Authentication Code dc
 
Title Statement Newsvendor Problem Experiments: Riskiness of the Decisions and Learning by Experience
 
Added Entry - Uncontrolled Name Arshavskiy, Victor
Okulov, Vitaliy
Smirnova, Alena
Center for Technology and Economics Development, NYU Abu Dhabi and Graduate School of Management, Saint Petersburg State University
Graduate School of management, St. Petersburg State University
Graduate School of management, St. Petersburg State University
 
Uncontrolled Index Term Array
 
Summary, etc. We describe the results of three controlled (multi–rounds) experiments in which the players made decisions on purchasing products by fixed price and further selling under demand uncertainty. In our experiments we have introduced the competition; if a player has a lot of product ordered, he could win over buyers away from his competitor. We study the rationality of decisions and the learning by experience. Analysis shows that in each round the average decision of players was more aggressive (risky) than the optimal decision obtained under the assumption that the players maximize the expected profit. But by the end of the experiments the variance of the individual decisions decreased, so the choice of decision was more confident and conscious.
 
Publication, Distribution, Etc. LAR Center Press
 
Electronic Location and Access application/pdf
https://thejournalofbusiness.org/index.php/site/article/view/500
 
Data Source Entry International Journal of Business and Social Research; Vol 4, No 5 (2014): May
 
Language Note eng
 
Terms Governing Use and Reproduction Note Copyright (c)