 Strategic customer behavior facing possible stockout: An experimental studyYanan Song and Xiaobo Zhao International Journal of Production Economics, 2016, vol. 180, issue C, 57-67 Abstract: This paper studies strategic customer behavior in a monopolistic seller system. Given the stock quantity and the selling prices, a customer chooses either to buy at the full price to certainly obtain a product or to wait for a discount with the risk of stockout. We model the behavior of strategic customers as a customer-game. It is shown that the customer-game may have multiple Nash equilibria. Specifically, in the condition of weak incentive compatibility, the trembling hand perfect equilibrium is “all-wait”, which is inconsistent with the “all-buy” assumption in the literature. We conduct laboratory experiments to investigate behavior of strategic customers. The results show that customers' behaviors exhibit a deviation from Nash equilibria. Using a framework of quantal response equilibrium, we develop behavioral models to effectively characterize the behavior of strategic customers. Keywords: Strategic customer; Nash equilibrium; Incentive compatibilitybounded rationality (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:proeco:v:180:y:2016:i:c:p:57-67 DOI: 10.1016/j.ijpe.2016.07.006 Access Statistics for this article International Journal of Production Economics is currently edited by Stefan Minner More articles in International Journal of Production Economics from Elsevier |
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