Wang, Charles X.; Webster, Scott; Suresh, Nallan C. - In: European Journal of Operational Research 196 (2009) 2, pp. 544-553
We model a risk-averse newsvendor's decision-making behavior with some commonly used classes of utility functions within the expected utility theory (EUT) framework. Under fairly general conditions of EUT, we show that a risk-averse newsvendor will order less than an arbitrarily small quantity...