Prospect Theory and the Newsvendor Problem

• 成果类型: Article
• 署名作者: Nagarajan, Mahesh; Shechter, Steven
• 署名单位: University of British Columbia
• 刊物名称: MANAGEMENT SCIENCE
• ISSN/ISSBN: 0025-1909
• DOI: 10.1287/mnsc.2013.1804
• 发表日期: 2014
• 页码: 1057-1062
• 关键词: Prospect theory; Newsvendor Problem; risk preference

摘要

The newsvendor problem is a fundamental decision problem in operations management. Various independent experimental studies in laboratory settings have shown similar deviations from the theoretical optimal order quantity. We clarify that Prospect Theory, a prevalent framework for decision making under uncertainty, cannot explain the consistent empirical findings.