Information is crucial to the supply chain because it provides the foundation for managerial decisions. Inventory decisions often depend on private forecast shared by retailers. Facing uncertain demand, suppliers tend to rely on nonverifiable retailers’ reports known as “cheap talk”....

Over the past two decades, the field of behavioral operations has demonstrated that combining economic incentives with behavioral aspects results in successful operational contracting. Social considerations (such as fairness, trust and trustworthiness, reciprocity, and others) motivate the...

During recent two decades the behavioral operations literature has proved with numerous studies that operational contracting allies the economic incentives with the behavioral aspects. Social considerations (such as fairness, trust and trustworthiness, reciprocity, and others) motivate the...

Inventory management relies on the economic order quantity (EOQ) and newsvendor models. While the newsvendor model has received much attention in the field of behavioral operations management (BOM), the EOQ problem remains largely untouched. This study presents one of the first empirical...

Game theoretic analysis of a supplier-retailer system in a two-period newsvendor setting reveals that, on the part of the retailer, committing to disposal of inventory, that is to discard unsold inventory, rather than carryover to the next period, is preferred, under certain conditions, because...

Digital extortion has emerged as a significant threat to organizations that rely on information technologies for their operations. Using human-subject experimentation, we study the effectiveness of message appeals in encouraging defenders to adopt two mitigation strategies, investment in...

We tested the effects of various of policy rules on retailer behavior in laboratory experiments conducted at Hewlett-Packard Laboratories. Our experimental design models the multifaceted contemporary market for consumer computer products and is quite complex, but we found that participants can...

We present a novel methodology for predicting future outcomes that uses small numbers of individuals participating in an imperfect information market. By determining their risk attitudes and performing a nonlinear aggregation of their predictions, we are able to assess the probability of the...