Kim, Chong Keun; Kim, Pan Soo; Kwon, Joon Yeop - In: Global business and finance review 27 (2022) 5, pp. 55-64
Purpose: The purpose of this study is to investigate how ambiguity faced by the risk-neutral manager affects the firm’s optimal level of safety stock. Design/methodology/approach: This study adopts the traditional model of Arrow et al. (1951) and employ a manager who has multiple prior beliefs...