Purpose – Rating, as a common way of evaluation, is a significant exercise and plays a major role in managerial decision-making in general and in particular online purchasing. The paper aims to discuss these issues. Design/methodology/approach – This study utilizes the theory of social...

Purpose The purpose of this paper is to discuss the role of reference effect on newsvendor’s decision behavior in a market with strategic customers and work out the newsvendor’s optimal pricing policy and ordering quantity. Design/methodology/approach This study utilizes the prospect theory...