The Loss-Averse Newsvendor Problem With Reference Effect

Based on the quantity-oriented reference points,this paper considers loss-averse newsvendor model with reference effect and strategic customers and a loss-averse com-petitive newsvendor problem with reference effect separately.As a benchmark model,we first consider the situation with myopic consumers,give the equation satisfied by the optimal order quantity,and analyze the influence of system parameters on the optimal decision.Secondly,this paper studies the impact of strategic consumers on the loss-averse retailer with reference effect,determines and analyzes the ratioual expectation equilibrium price and order quantity.Finally,under the rules of demand reallocation and proportion-al demand allocation,we characterize the existence of the equilibrinm order quantity.We explore the impact of the system parameters on the equilibrium order quantity with homogeneous newsvendors under demand rules.Furthermore,we compare the total equi-librium order quantity with homogeleous newsvendors with that for risk-neutral supply chain through the loss-averse level,reference intensity and maximum revenue weight.