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Managers and Students as Newsvendors

Author

Listed:
  • Gary E. Bolton

    (Jindal School of Management, University of Texas at Dallas, Richardson, Texas 75080; and Smeal College of Business, Pennsylvania State University, University Park, Pennsylvania 16802)

  • Axel Ockenfels

    (Department of Economics, University of Cologne, D-50923 Cologne, Germany)

  • Ulrich W. Thonemann

    (Department of Business Administration, University of Cologne, D-50923 Cologne, Germany)

Abstract

We compare how experienced procurement managers and students solve the newsvendor problem. We find that managers broadly exhibit the same kind of pull-to-center bias as students do. Also, managers use information and task training no better than students. The performance of managers is positively affected by the level of their education and their level in the organizational hierarchy. We discuss implications for theory and for how ordering might be improved in practice. This paper was accepted by Teck Ho, decision analysis.

Suggested Citation

  • Gary E. Bolton & Axel Ockenfels & Ulrich W. Thonemann, 2012. "Managers and Students as Newsvendors," Management Science, INFORMS, vol. 58(12), pages 2225-2233, December.
    • Handle: RePEc:inm:ormnsc:v:58:y:2012:i:12:p:2225-2233
    DOI: 10.1287/mnsc.1120.1550
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    References listed on IDEAS

    as
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