Observation Bias: The Impact of Demand Censoring on Newsvendor Level and Adjustment Behavior

Published Online:https://doi.org/10.1287/mnsc.2013.1825

References

  • Benzion U, Cohen Y, Peled R, Shavit T (2008) Decision-making and the newsvendor problem: An experimental study. J. Oper. Res. Soc. 59:1281–1287.CrossrefGoogle Scholar
  • Bolton GE, Katok E (2008) Learning by doing in the newsvendor problem: A laboratory investigation of the role of experience and feedback. Manufacturing Service Oper. Management 10(3):519–538.LinkGoogle Scholar
  • Bolton GE, Ockenfels A, Thonemann UW (2012) Managers and students as newsvendors. Management Sci. 58(12):2225–2233.LinkGoogle Scholar
  • Bostian AA, Holt CA, Smith AM (2008) Newsvendor “pull-to-center” effect: Adaptive learning in a laboratory experiment. Manufacturing Service Oper. Management 10(4):590–608.LinkGoogle Scholar
  • Cachon G, Terwiesch C (2009) Matching Supply with Demand: An Introduction to Operations Management, 2nd ed. (McGraw-Hill/Irwin, New York).Google Scholar
  • Ding X, Puterman ML, Bisi A (2002) The censored newsvendor and the optimal acquisition of information. Oper. Res. 50(3):517–527.LinkGoogle Scholar
  • Feiler DC, Tong JD, Larrick RP (2013) Biased judgment in censored environments. Management Sci. 59(3):573–591.LinkGoogle Scholar
  • Fiske ST, Taylor SE (1991) Social Cognition (McGraw-Hill, Singapore).CrossrefGoogle Scholar
  • Harpaz G, Lee WY, Winkler RL (1982) Learning, experimentation, and the optimal output decisions of a competitive firm. Management Sci. 28(6):589–603.LinkGoogle Scholar
  • Kremer M, Minner S, Van Wassenhove LN (2010) Do random errors explain newsvendor behavior? Manufacturing Service Oper. Management 12(4):673–681.LinkGoogle Scholar
  • Lariviere MA, Porteus EL (1999) Stalking information: Bayesian inventory management with unobserved lost sales. Management Sci. 45(3):346–363.LinkGoogle Scholar
  • Lewis DK (1969) Convention: A Philosophical Study (Harvard University Press, Cambridge, MA).Google Scholar
  • Lurie NH, Swaminathan JM (2009) Is timely information always better? The effect of feedback frequency on decision making. Organ. Behav. Human Decision Processes 108(2):315–329.CrossrefGoogle Scholar
  • Massey C, Wu G (2005) Detecting regime shifts: The causes of under- and overreaction. Management Sci. 51(6):932–947.LinkGoogle Scholar
  • Nahmias S (1994) Demand estimation in lost sales inventory systems. Naval Res. Logist. Quart. 41(6):739–757.CrossrefGoogle Scholar
  • Rudi N (2009) Ludo (B). Newsvendor calculations. INSEAD Case, INSEAD, Singapore.Google Scholar
  • Rudi N, Drake DF (2009) Ludo (A): Ludo Press and the newsvendor problem. INSEAD Case, INSEAD, Singapore.Google Scholar
  • Schweitzer ME, Cachon GP (2000) Decision bias in the newsvendor problem with a known demand distribution: Experimental evidence. Management Sci. 46(3):404–420.LinkGoogle Scholar
  • Su X (2008) Bounded rationality in newsvendor models. Manufacturing Service Oper. Management 10(4):566–589.LinkGoogle Scholar
  • Taylor SE, Crocker J, Fiske ST, Sprinzen M, Winkler J (1979) The generalizability of salience effects. J. Personality Soc. Psych. 37(3):357–368.CrossrefGoogle Scholar
  • Tversky A, Kahneman D (1973) Availability: A heuristic for judging frequency and probability. Cognitive Psych. 5(2):207–232.CrossrefGoogle Scholar
  • Tversky A, Kahneman D (1974) Judgment under uncertainty: Heuristics and biases. Science 185(4157):1124–1131.CrossrefGoogle Scholar
INFORMS site uses cookies to store information on your computer. Some are essential to make our site work; Others help us improve the user experience. By using this site, you consent to the placement of these cookies. Please read our Privacy Statement to learn more.