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The Expectation-Based Loss-Averse Newsvendor

Title data

Herweg, Fabian:
The Expectation-Based Loss-Averse Newsvendor.
In: Economics Letters. Vol. 120 (2013) Issue 3 . - pp. 429-432.
ISSN 0165-1765
DOI: https://doi.org/10.1016/j.econlet.2013.05.035

Official URL: Volltext

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Abstract in another language

We modify the classic single-period inventory management problem by assuming that the newsvendor is expectation-based loss averse according to Kőszegi and Rabin (2006, 2007). We show that the expectation-based loss-averse newsvendor orders less than the profit-maximizing quantity. Moreover, the order placed by the expectation-based loss-averse newsvendor features plausible comparative statics of cost and price changes.

Further data

Item Type: Article in a journal
Refereed: Yes
Keywords: Behavioral operations management; Inventory decision; Loss aversion; Newsvendor
Institutions of the University: Faculties > Faculty of Law, Business and Economics > Department of Economics > Chair Economics VIII: International Competition Policy > Chair Economics VIII: International Competition Policy - Univ.-Prof. Dr. Fabian Herweg
Faculties
Faculties > Faculty of Law, Business and Economics
Faculties > Faculty of Law, Business and Economics > Department of Economics
Faculties > Faculty of Law, Business and Economics > Department of Economics > Chair Economics VIII: International Competition Policy
Result of work at the UBT: No
DDC Subjects: 300 Social sciences > 330 Economics
Date Deposited: 11 Feb 2015 09:26
Last Modified: 01 Dec 2017 06:58
URI: https://eref.uni-bayreuth.de/id/eprint/6673