Journal ArticleDOI
Stocking and pricing decisions under endogenous demand and reference point effects
TLDR
This analysis reveals a threshold policy on the firm’s ordering and pricing decisions while considering the impact of reference point effects and finds that as the level of optimism increases, the firms’ optimal ordering level decreases and optimal price increases.About:
This article is published in European Journal of Operational Research.The article was published on 2018-01-01. It has received 33 citations till now. The article focuses on the topics: Extended newsvendor model & Newsvendor model.read more
Citations
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Journal ArticleDOI
The overconfident and optimistic price-setting newsvendor
TL;DR: It is found that greater optimism typically results in lower margins and higher inventory, aligning with the more intuitive interpretation of optimism.
Journal ArticleDOI
Pricing and ordering by a loss averse newsvendor with reference dependence
Tian Bai,Meng Wu,Stuart X. Zhu +2 more
TL;DR: In this paper, the joint optimization of pricing and ordering decisions for a loss-averse newsvendor with reference dependence was studied, and the effects of reference dependence and loss aversion from various aspects were explored.
Journal ArticleDOI
Internal and external reference effects in a two-tier supply chain
TL;DR: It is shown that the internal and external reference effects in isolation can have opposite effects on the wholesale price set by a supplier who has full knowledge on the retailer’s ordering bias, and the relative impact of each reference effect is highly dependent upon the profit margin.
Journal ArticleDOI
Dynamic Pricing in a Multi-Period Newsvendor Under Stochastic Price-Dependent Demand
TL;DR: In this paper, a multi-period newsvendor model is developed under the distribution-free approach and the optimal stocking quantities, unit selling price, and the discount percentage are obtained.
Journal ArticleDOI
Sourcing under overconfident buyer and suppliers
TL;DR: In this paper, the impact of overconfidence bias on the buyer's supply-base design strategy was studied and a threshold policy for impact of buyer's overconfidence bias was proposed.
References
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Book ChapterDOI
Prospect theory: an analysis of decision under risk
Daniel Kahneman,Amos Tversky +1 more
TL;DR: In this paper, the authors present a critique of expected utility theory as a descriptive model of decision making under risk, and develop an alternative model, called prospect theory, in which value is assigned to gains and losses rather than to final assets and in which probabilities are replaced by decision weights.
Journal ArticleDOI
Prospect theory: analysis of decision under risk
Daniel Kahneman,Amos Tversky +1 more
Journal ArticleDOI
Mental accounting matters
TL;DR: Mental accounting is the set of cognitive operations used by individuals and households to organize, evaluate, and keep track of financial activities as discussed by the authors, where outcomes are perceived and experienced, and how decisions are made and subsequently evaluated.
Journal ArticleDOI
A Model of Reference-Dependent Preferences
Botond Koszegi,Matthew Rabin +1 more
TL;DR: This article developed a model of reference-dependent preferences and loss aversion where the gain-loss utility is derived from standard consumption utility and the reference point is determined endogenously by the economic environment.
Posted Content
A Model of Reference-Dependent Preferences
Botond Koszegi,Matthew Rabin +1 more
TL;DR: In this paper, reference-dependent gain-loss utility is combined with standard economic consumption utility, and a consumer's willingness to pay for a good is endogenously determined by the market distribution of prices and how she expects to respond to these prices.
Related Papers (5)
Prospect Theory Explains Newsvendor Behavior: The Role of Reference Points
Xiaoyang Long,Javad Nasiry +1 more