Abstract
Mean anchor and chasing demand are two heuristics widely used in literature to explain newsvendor’s decision bias. The mean anchor heuristic is an aggregate representation, and static to some extent. In a dynamic setting we significantly control demand chasing behavior and conduct a laboratory experiment. We find that besides the two aforementioned heuristics subject’s response to demand history is heterogenous and cannot be neglected.
This research was supported by National Natural Science Foundation of China (Grant No. 71201134).
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© 2014 Springer International Publishing Switzerland
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Geng, W., Ding, X. (2014). Newsvendor’s Response to Demand History. In: Rau, P.L.P. (eds) Cross-Cultural Design. CCD 2014. Lecture Notes in Computer Science, vol 8528. Springer, Cham. https://doi.org/10.1007/978-3-319-07308-8_43
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DOI: https://doi.org/10.1007/978-3-319-07308-8_43
Publisher Name: Springer, Cham
Print ISBN: 978-3-319-07307-1
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