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Newsvendor’s Response to Demand History

  • Wei Geng
  • Xiaodong Ding
Part of the Lecture Notes in Computer Science book series (LNCS, volume 8528)

Abstract

Mean anchor and chasing demand are two heuristics widely used in literature to explain newsvendor’s decision bias. The mean anchor heuristic is an aggregate representation, and static to some extent. In a dynamic setting we significantly control demand chasing behavior and conduct a laboratory experiment. We find that besides the two aforementioned heuristics subject’s response to demand history is heterogenous and cannot be neglected.

Keywords

Individual Model Order Quantity Customer Demand Aggregate Model Optimal Order Quantity 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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References

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Copyright information

© Springer International Publishing Switzerland 2014

Authors and Affiliations

  • Wei Geng
    • 1
  • Xiaodong Ding
    • 2
  1. 1.School of Economics and ManagementSouthwest Jiaotong UniversityChengduChina
  2. 2.School of Traffic and TransportationSouthwest Jiaotong UniversityChengduChina

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