Bostian, AJ A.; Holt, Charles A.; Smith, Angela M. - In: Manufacturing & Service Operations Management 10 (2008) 4, pp. 590-608
In the newsvendor game, the expected-profit-maximizing order quantity is higher in the demand interval when the per-unit profit margin is high and lower in the demand interval when the per-unit profit margin is low. However, laboratory experiments show a "pull-to-center" effect: average order...