Decision making in the newsvendor problem: A cross-national laboratory study

• Published in: Omega (Oxford) Vol. 39; no. 1; pp. 41 - 50
• Main Authors: Feng, Tianjun, Keller, L. Robin, Zheng, Xiaona
• Format: Journal Article
• Language: English
• Published: Kidlington Elsevier Ltd 2011; Elsevier; Pergamon Press Inc
• Series: Omega
• Subjects: Applied sciences; Behavioral operations management; Bestellung; China; Context-dependent preferences; Cross-national difference; Cross-national difference Newsvendor decisions Pull-to-center effect Context-dependent preferences Flat-maximum hypothesis Behavioral operations management; Decision making; Decision making models; Decision theory. Utility theory; Entscheidungstheorie; Exact sciences and technology; Flat-maximum hypothesis; Hypotheses; Inventory control, production control. Distribution; Laboratories; Lagerhaltungsmodell; Newsvendor decisions; Operational research and scientific management; Operational research. Management science; Order quantity; Preferences; Studies; Test; USA; “Pull-to-center” effect; United States > US; China; Cross-national difference; Newsvendor decisions; Context-dependent preferences; Flat-maximum hypothesis; Behavioral operations management; “Pull-to-center” effect; Decision support system; Ordered set; Decision making; Newsboy problem; Context aware; Production management; Pull-to-center effect; Behavioral analysis; Preference; Economic order quantity; Ordering; Profit

In this paper, we conduct a laboratory experiment using the classic newsvendor problem to examine cross-national differences in inventory ordering patterns between Chinese and American decision makers based on a theoretical examination of the role of the Doctrine of the Mean in Chinese decision maki...