Newsvendors, such as newspaper companies, face the challenge that they need to decide how many units to produce before facing the demand by customers, and that their products are perishable. Experimental studies have documented that individuals do not find the optimal solution to that problem...

We consider a simple Stackelberg model with demand uncertainty only for the first mover in order to compare the advantages of leadership and flexibility, and use an example to provide some discussion about the endogenous order of moves in the presence of demand uncertainty. We find that only...

This study is the first to investigate the effect of demand rationing in experimental Bertrand-Edgeworth markets with fixed exogenous capacities. It is found that prices and profits are significantly higher under proportional than under efficient demand rationing. Moreover, the amount of...