Universität zu Köln

Ockenfels, Axel ORCID: 0000-0003-1456-0191 and Selten, Reinhard (2015). Impulse Balance and Multiple-Period Feedback in the Newsvendor Game. Prod. Oper. Manag., 24 (12). S. 1901 - 1907. HOBOKEN: WILEY-BLACKWELL. ISSN 1937-5956

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Abstract

Human subjects in the newsvendor game place suboptimal orders: orders are typically between the expected profit-maximizing quantity and mean demand (pull-to-center bias). In previous work, we have shown that impulse balance equilibrium (IBE), which is based on a simple ex post rationality principle along with an equilibrium condition, can predict ordering decisions in the laboratory. In this study, we extend IBE to standing orders and multiple-period feedback and show that it predicts-in line with previous findings-that constraining newsvendors to make a standing order for a sequence of periods moves the average of submitted orders toward the optimum.

Item Type:	Journal Article
Creators:	Creators Email ORCID ORCID Put Code Ockenfels, Axel UNSPECIFIED orcid.org/0000-0003-1456-0191 UNSPECIFIED Selten, Reinhard UNSPECIFIED UNSPECIFIED UNSPECIFIED
URN:	urn:nbn:de:hbz:38-384782
DOI:	10.1111/poms.12399
Journal or Publication Title:	Prod. Oper. Manag.
Volume:	24
Number:	12
Page Range:	S. 1901 - 1907
Date:	2015
Publisher:	WILEY-BLACKWELL
Place of Publication:	HOBOKEN
ISSN:	1937-5956
Language:	English
Faculty:	Faculty of Management, Economy and Social Sciences
Divisions:	Faculty of Management, Economics and Social Sciences > Economics > Macroeconomic, Financial and Economic Policy > Professur für Economics, Design and Behavior Center of Excellence C-SEB
Subjects:	Economics
Uncontrolled Keywords:	Keywords Language MYOPIC LOSS AVERSION; STATIONARY CONCEPTS; DECISION-MAKING; PROSPECT-THEORY; BEHAVIOR; MODELS Multiple languages Engineering, Manufacturing; Operations Research & Management Science Multiple languages
Refereed:	Yes
URI:	http://kups.ub.uni-koeln.de/id/eprint/38478