Entrepreneurs and newsvendors: do entrepreneurs follow the newsvendor logic when making inventory decisions? (Extended abstract)
This work empirically assesses the degree to which inventory decisions made by entrepreneurs are informed by the logic underlying the newsvendor model and influenced by the decision-makers risk profile. We employed a web- and email-based survey of some 50 entrepreneurs, combined with telephone follow-up to elicit risk profiles. Our findings suggest that entrepreneurs do follow the newsvendor logic, but more so for highmargin than for best-selling products. We find that entrepreneurs risk profiles are consistent with predictions from prospect theory. We also find that risk aversion for profits tends to be associated with higher safety stocks, in contradiction to existing theory.
entrepreneurs inventory empirical risk prospect theory.
Charles J. Corbett Jan C. Fransoo
UCLA Anderson School of Management Technische Universiteit Eindhoven
国际会议
2007 International Conference on Manufacturing & Service Operations Management(2007制造与服务运作管理国际学术会议)
北京
英文
2007-06-18（万方平台首次上网日期，不代表论文的发表时间）