Experimental Study On Newsboy Ordering Decisions With Behavioral Factors

In this paper, we adopt laboratory experiment and scale measurement methods to study and discuss the impacts on newsboy ordering decisions. First, in no return environment, we implement the laboratory experiment and study behavior differences in the newsboy ordering decisions from the decision-making style and the risk preference perspective. Then, in return environment, we implement the laboratory experiment on newsboy ordering decisions. By analyzing the actual orderings in three different behavioral experiments, we verify the different behavior factors of the impact on newsboy problems. The outcomes and findings enrich the existing theoretical results and make up the vacancies in academic research. At the same time, this paper provides a scientific and rational ordering strategy suggestion for the enterprises, and provides the decision-makers with accurate decisions for reference.The main contents of this dissertation are as followed:1. In no return case, this paper experimentally studies behavior differences in newsvendor problems from the decision-making style perspective. Results from the experiment demonstrate that decision-making style can influence decision behaviors significantly. Specifically, relative to individuals with satisficing style, individuals with maximizing style have better order quantities, less ordering variability, and larger expected profits, and exhibit lower tendencies to chase prior demand and mean anchoring(only under high cost setting). Relative to the low cost setting, individuals in high cost setting have better order quantities, less ordering variability, and better expected profits, and exhibit lower tendencies to chase prior demand and mean anchoring.2. In no return case, this paper experimentally studies behavior differences in newsvendor problems from the risk preference perspective. Results from the experiment demonstrate that different risk preference can influence decision behaviors significantly. The specific results show that:individuals with risk-seeking preference have higher order quantities than those with risk-averse preference. Moreover, compared with risk-seeking preference, individuals with risk-averse preference have better order quantities (only under high cost setting), and exhibit lower tendencies to chase prior demand and mean anchoring (only under high cost setting). Compared with the low cost setting, individuals with risk-averse preference in high cost setting have better order quantities; and different risk preference exhibit lower tendencies to chase prior demand and mean anchoring under high cost setting.3. In return case, this paper experimentally studies the impacts on the newsboy ordering decisions. Results from the experiment demonstrate that return environment can influence decision results significantly. Relative to no return environment, when facing to return environment, individuals in high cost setting have much order quantities, and exhibit much deviated from the optimal order quantities; in low cost setting, individuals will be less deviated from the optimal order quantities. Compared with no return environment, when facing to return environment, individuals exhibit lower tendencies to chase prior demand, and exhibit lower tendencies to mean anchoring under low cost setting.