会议专题

Risk-Averse Newsvendor Model with Strategic Consumers

The newsvendor problem is a fundamental building block for inventory management with a stochastic demand. The classic newsvendor problem focuses on maximizing the expected profit or minimizing the expected cost when she faces myopic customers. However, it ignores the customers bargain-hunting behavior and risk preference measure of newsvendor. As a result, we carry out the rational expectation (RE) equilibrium analysis for risk-averse newsvendor facing forward-looking customers who anticipate future sales and choose purchasing timing to maximize their expected surplus. We propose the equilibrium price and quantity for the case where demand follows the uniform distribution and utility is power function. We identify the impact the system parameters on the RE equilibrium decisions for this specific situation.

Strategic customer behavior Risk attitude Newsvendor Rational expectation

Tie Wang Qiying Hu

Faculty of Mathematics and Phd Candidate in Management Science and Engineering, Liaoning University, Department of Management Science, Fudan University, Shanghai, 200433, China

国际会议

2011 China Control and Decision Conference(2011中国控制与决策会议 CCDC)

四川绵阳

英文

3240-3244

2011-05-23(万方平台首次上网日期,不代表论文的发表时间)