A Note on “Prospect Theory and the Newsvendor Problem-

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• 作者：Xiao-Bo Zhao ; Wei Geng
• 关键词：Newsvendor problem ; Prospect theory ; Reference point ; 90B05
• 刊名：Journal of the Operations Research Society of China
• 出版年：2015
• 出版时间：March 2015
• 年：2015
• 卷：3
• 期：1
• 页码：89-94
• 全文大小：114 KB
• 参考文献：1. Chen, L., Long, D., Perakis, G.: The impact of a target on newsvendor decisions. MSOM (2014). doi:10.1287/msom.2014.0500
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  4. Kahneman, D, Tversky, A (1979) Prospect theory: an analysis of decision under risk. Econometrica 47: pp. 263-291 CrossRef
  5. Long, X., Nasiry, J.: Prospect theory explains newsvendor behavior: the role of reference points. Manag. Sci (2014). doi:10.1287/mnsc.2014.2050
  6. Nagarajan, M, Shechter, S (2014) Prospect theory and the newsvendor problem. Manag. Sci. 60: pp. 1057-1062 CrossRef
  7. Schweitzer, ME, Cachon, GP (2000) Decision bias in the newsvendor problem with a known demand distribution: experimental evidence. Manag. Sci. 46: pp. 404-420 CrossRef
  8. Tversky, A, Kahneman, D (1992) Advances in prospect theory: cumulative representation of uncertainty. J. Risk Uncertain. 5: pp. 297-323 CrossRef
  9. Uppari, B., Hasija, S.: On the consistency between prospect theory and the newsvendor pull-to-center effect. Working paper (2014)
  10. Zhao, X., Geng, W.: A note on prospect theory and the newsvendor problem. Available at SSRN: http://ssrn.com/abstract=2431140 (2014)
  11. Zhao, X., Geng, W., Hao, H.: Predicting the behavior of a newsvendor using prospect theory. Available at SSRN: http://ssrn.com/abstract=2539051 (2014)
  
• 刊物主题：Operations Research, Management Science;
• 出版者：Springer Berlin Heidelberg
• ISSN：2194-6698

文摘

Based on the newsvendor setting, many behavioral models are proposed to predict the biases of decision makers in inventory management. Recently, Nagarajan and Shechter (Manag Sci 60:1057-062, 2014) claimed that prospect theory cannot explain the consistent empirical findings. However, it is noticed that their model is a special case of the general prospect theory model. In this note, we show that the general prospect theory model may be powerful in predicting the preferences of decision makers in inventory management.