Decision bias considering newsvendors psychological costs when products are substitutable
Prior studies about newsvendor have demonstrated that decision bias exists in a no competition situation.To analyse decision bias in a more common and complex situation,we extend the basic newsvendor model to include the possibility that a product with surplus inventory can be used as a substitute for out of stock products.We incorporate psychological costs into our model to explore whether or not decision bias exists,and analyse how psychological factors,profit margin,product substitutability and demand uncertainty influence newsvendors order decision.Based on analysis of the solution attributes,a Monte Carlo simulation method for optimal solution is provided,followed by numerical experiments.Our main conclusion is that the mismatch of psychological cost ratio and the real cost ratio leads to decision bias,and product substitutability has both “quantity-magnification effect and “bias-minification effect.
Product substitutability Newsvendor problem Psychological losses Decision bias
Qiuhong Zhao Qi Zhang Shouyang Wang Feng Ye
School of Economics and Management,Beihang University,Beijing 100191,China Institute of Mathematics and System Science,Chinese Academy of Science,Beijing,100190,China
国际会议
上海
英文
160-174
2017-07-07（万方平台首次上网日期，不代表论文的发表时间）