Newsvendor decision making is ubiquitous in the global economy. Very often, newsvendor decision makers are overworked; thus, making ordering decisions is one of myriad things on their plate. They do not have the energy to focus solely on the newsvendor decisions and yet have to make them under...

Teachers of management science or quantitative methods in schools of business probably recognize the above passage as the beginning of a description of one of our discipline's favorite problems?the newsvendor problem. Known by many names....newsboy, Christmas tree, and single-period...

In this paper, we discuss discrete choice theory and show how this theory can be used to quantify learning effects in experimental studies. We argue why the ordering quantities in newsvendor experiments should follow a multinomial logit distribution. We provide a robustness analysis to explain...

We propose a behavioral theory to predict actual ordering behavior in multi-location inventory systems. The theory rests on a well-known stylized fact of human behavior: People's preferences are reference-dependent. We incorporate reference-dependence into the newsvendor framework by assuming...

This laboratory study investigates the impact of the decision-making hierarchy and heterogeneity of knowledge on team performance and on individual performance after the team is dissolved. Our experiment examines effects of both factors. Hierarchical teams perform similarly to individual...