This research aims at establishing a connection between the theory and practice of retail revenue management by designing a decision support system based on the experience acquired from several applied research projects at various retailers. With this system, users are expected to be able to...

We approach the newsvendor with pricing problem as a practitioner who must model demand as a function of price. Previous work required strong assumptions about demand curves, making practical implementation of results problematical. Instead, we assume that customers have reservation prices which...

We approach the newsvendor with pricing problem as a practitioner who must model demand as a function of price. Previous work required strong assumptions about demand curves, making practical implementation of results problematical. Instead, we assume that customers have reservation prices which...

This paper studies the relationship between income and risky choice in a field ex- periment where stakes are of first-orderimportance to the subjects' living standards. We combine observations of stopping decisions in a Norwegian game show with reliable data on each subject's income....

This paper is concerned with estimating preference functionals for choice under risk from the choice behaviour of individuals. We start from the observation that there is heterogeneity in behaviour between individuals and within individuals. By ‘heterogeneity between individuals’ we mean...

Gneezy, List and Wu [Q. J. Econ. 121 (2006) 1283-1309] document that lotteries are often valued less than the lotteries’ worst outcomes. We show how to undo this result.

This paper provides empirical evidence that distinguishes between alternative conceptualizations of the risky decision making process. Two studies investigate whether cross-situational differences in choice behavior should be interpreted in the expected utility framework as differences in risk...

This paper investigates equilibrium R&D investment strategies of firms endowed with different innovation potentials. To address this issue, this paper permits two stages of innovation and develops a simple stochastic game model involving two firms. It is shown that in equilibrium, a leader in...

Microdata from the UK Survey of Mortgage Lenders is used to model borrowers' choices between variable and fixed rate mortgages. The data is treated as a large-scale "natural experiment" on risky choice, with the choice of a fixed rate corresponding to the "safe choice" in a more conventional...

Experiments frequently use a random incentive system (RIS), where only tasks that are randomly selected at the end of the experiment are for real. The most common type pays every subject one out of her multiple tasks (within-subjects randomization). Recently, another type has become popular,...