Work

Chinese perspective on newsvendor bias: An exploratory note

Year: 2012

Type: article

Abstract: Chinese and American decision makers demonstrated significantly different biases while making newsvendor decisions in a laboratory experiment that utilizes the open‐ended verbal protocol analysis approach. Chinese subjects (i) asked more questions before reaching their decision, which suggests that they are more cautious when making a decision; (ii) were more frequently able to come up with a new number as their decision whereas the American decision makers tended to use one of the given numbers as their decision; (iii) were more cognizant of salvage values and as a result ordered more than the American decision makers. Due to the open‐ended, time‐consuming nature of our experiment, our subject pool was small and thus we present these results as exploratory in nature and discuss directions that are worth further study in future experiments.

Source: Journal of Operations Management

DOI: 10.1016/j.jom.2012.10.001

Authors: Yin Cui, Lucy Gongtao Chen, Jian Chen, Srinagesh Gavirneni, Qi Wang

Institutions: Tsinghua University, National University of Singapore, Cornell University

Language: English

Topic: Supply Chain and Inventory Management

Subfield: Management Information Systems

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: bronze

Funders: National Science Foundation, National Natural Science Foundation of China, Tsinghua University, Tsinghua Initiative Scientific Research Program

Awards: 低碳时代的供应链建模、优化与协调的理论与方法研究, G8804524515