Research output: Contribution to journal › Article › peer-review
Newsvendor Problem Experiments : Riskiness of the Decisions and Learning by Experience. / Arshavskiy, V.; Okulov, V.; Smirnova, A.
In: International Journal of Business and Social Research, Vol. 4, No. 5, 2014, p. 137-150.Research output: Contribution to journal › Article › peer-review
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TY - JOUR
T1 - Newsvendor Problem Experiments
T2 - Riskiness of the Decisions and Learning by Experience
AU - Arshavskiy, V.
AU - Okulov, V.
AU - Smirnova, A.
N1 - Arshavskiy, V. Newsvendor Problem Experiments: Riskiness of the Decisions and Learning by Experience / V. Arshavskiy, V. Okulova, A. Smirnova // International Journal of Business and Social Research. - 2014. - Volume 4, № 5. - P.137-150.
PY - 2014
Y1 - 2014
N2 - We describe the results of three controlled (multi-rounds) experiments in which the players made decisions on purchasing products by fixed price and further selling under demand uncertainty. In our experiments we have introduced the competition; if aplayer has a lot of product ordered, he could win over buyers away from his competitor. We study the rationality of decisions and the learning by experience. Analysis shows that in each round the average decision of players was more aggressive (risky) than the optimal decision obtained under the assumption that the players maximize the expected profit. But by the end of the experiments the variance of the individual decisions decreased, so the choice of decision was more confident and conscious.
AB - We describe the results of three controlled (multi-rounds) experiments in which the players made decisions on purchasing products by fixed price and further selling under demand uncertainty. In our experiments we have introduced the competition; if aplayer has a lot of product ordered, he could win over buyers away from his competitor. We study the rationality of decisions and the learning by experience. Analysis shows that in each round the average decision of players was more aggressive (risky) than the optimal decision obtained under the assumption that the players maximize the expected profit. But by the end of the experiments the variance of the individual decisions decreased, so the choice of decision was more confident and conscious.
KW - newsvendor problem
KW - competition
KW - risk
KW - rationality
KW - learning by experience
M3 - Article
VL - 4
SP - 137
EP - 150
JO - International Journal of Business and Social Research
JF - International Journal of Business and Social Research
SN - 2164-2540
IS - 5
ER -
ID: 5731169