The expectation-based loss-averse newsvendor

Fabian Herweg ()

Munich Reprints in Economics from University of Munich, Department of Economics

Abstract: We modify the classic single-period inventory management problem by assuming that the newsvendor is expectation-based loss averse according to Koszegi and Rabin (2006, 2007). We show that the expectation-based loss-averse newsvendor orders less than the profit-maximizing quantity. Moreover, the order placed by the expectation-based loss-averse newsvendor features plausible comparative statics of cost and price changes.

Date: 2013
References: Add references at CitEc
Citations: View citations in EconPapers (29)

Published in Economics Letters 3 120(2013): pp. 429-432

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Journal Article: The expectation-based loss-averse newsvendor (2013)
Working Paper: The Expectation-Based Loss-Averse Newsvendor (2012)
Working Paper: The Expectation-Based Loss-Averse Newsvendor (2012)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:lmu:muenar:19411

Access Statistics for this paper

More papers in Munich Reprints in Economics from University of Munich, Department of Economics Ludwigstr. 28, 80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Tamilla Benkelberg ().