The expectation-based loss-averse newsvendor

Herweg, Fabian (2013): The expectation-based loss-averse newsvendor. In: Economics Letters, Bd. 120, Nr. 3: S. 429-432

Abstract

We modify the classic single-period inventory management problem by assuming that the newsvendor is expectation-based loss averse according to Koszegi 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.

• Dokumententyp: Zeitschriftenartikel
• Fakultät: Volkswirtschaft ; Volkswirtschaft > Lehrstühle > Juniorprofessur für Mikroökonomie (aufgelöst)
• Themengebiete: 300 Sozialwissenschaften > 330 Wirtschaft
• Sprache: Englisch