How to Compete Against a Behavioral Newsvendor

• 成果类型: Article
• 署名作者: Ovchinnikov, Anton; Moritz, Brent; Quiroga, Bernardo F.
• 署名单位: Pennsylvania Commonwealth System of Higher Education (PCSHE); Pennsylvania State University; Pennsylvania State University - University Park
• 刊物名称: PRODUCTION AND OPERATIONS MANAGEMENT
• ISSN/ISSBN: 1059-1478
• DOI: 10.1111/poms.12361
• 发表日期: 2015
• 页码: 1783-1793
• 关键词: Bounded rationality; inventory; experience; auctions; IMPACT

摘要

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.