Transshipment Between Overconfident Newsvendors

• 成果类型: Article
• 署名作者: Li, Jialu; Li, Meng; Zhao, Xuan
• 署名单位: Shandong University of Finance & Economics; University of Houston System; University of Houston; Wilfrid Laurier University
• 刊物名称: PRODUCTION AND OPERATIONS MANAGEMENT
• ISSN/ISSBN: 1059-1478
• DOI: 10.1111/poms.13424
• 发表日期: 2021
• 页码: 2803-2813
• 关键词: Supply chains

摘要

This study investigates the impacts of transshipment between overconfident newsvendors who perceive the expected outcome of a random event as more certain than it actually is. The conventional wisdom is that transshipment is a risk-pooling strategy for improving newsvendors' performance. However, we find that overconfident newsvendors can be worse off with transshipment as compared to without transshipment. This result remains when overconfident newsvendors possess other behaviors such as fairness, demand- and supply-side thinking, loss aversion, and demand anchoring. We also utilize data from controlled experiments to demonstrate that overconfidence is a robust behavior with transshipment.