Managers and Students as Newsvendors

Gary Bolton (), Axel Ockenfels and Ulrich W. Thonemann ()
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Ulrich W. Thonemann: Department of Business Administration, University of Cologne, D-50923 Cologne, Germany

Management Science, 2012, vol. 58, issue 12, 2225-2233

Abstract: We compare how experienced procurement managers and students solve the newsvendor problem. We find that managers broadly exhibit the same kind of pull-to-center bias as students do. Also, managers use information and task training no better than students. The performance of managers is positively affected by the level of their education and their level in the organizational hierarchy. We discuss implications for theory and for how ordering might be improved in practice. This paper was accepted by Teck Ho, decision analysis.

Keywords: newsvendor game; laboratory experiment; manager behavior; information usage (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (77)

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Persistent link: https://EconPapers.repec.org/RePEc:inm:ormnsc:v:58:y:2012:i:12:p:2225-2233

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