Individual differences in the newsvendor problem: Behavior and cognitive reflection

• Published in: Journal of operations management Vol. 31; no. 1-2; pp. 72 - 85
• Main Authors: Moritz, Brent B., Hill, Arthur V., Donohue, Karen L.
• Format: Journal Article
• Language: English
• Published: Chicago Elsevier B.V 01.01.2013; Elsevier; Wiley Subscription Services, Inc
• Subjects: Behavioral Operations; Behavioral sciences; Business schools; Cognitive ability; Cognitive reflection; Colleges; Decision making; Marketing; Newsvendor problem; Order quantity; Reflection; Studies; Supply chains; Tasks; Variance; Vendors; Cognitive reflection; Behavioral Operations; Newsvendor problem

Previous research has shown that when solving a newsvendor problem, individuals systematically and persistently deviate from the profit maximizing quantity. This paper investigates the relationship between cognitive reflection and newsvendor decision making, testing experienced supply chain professi...