The Newsboy Model: Changes in Risk and Price
AbstractIn this paper I extend the literature related with the newsboy model by analyzing the effect on orders of changes in risk and price. I show that risk aversion is necessary and sufficient condition for the newsboy to decrease orders when the demand suffers an FSD deterioration in risk, and analyze changes in price including an effect, which has been ignored in the literature. Copyright The Geneva Association 2005
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Bibliographic InfoArticle provided by Springer in its journal THE GENEVA RISK AND INSURANCE REVIEW.
Volume (Year): 30 (2005)
Issue (Month): 1 (June)
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Web page: http://www.springerlink.com/link.asp?id=102897
demand uncertainty; newsboy model; changes in risk;
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- Halkos, George & Kevork, Ilias, 2012. "Validity and precision of estimates in the classical newsvendor model with exponential and rayleigh demand," MPRA Paper 36460, University Library of Munich, Germany.
- Halkos, George & Kevork, Ilias, 2012. "Evaluating alternative estimators for optimal order quantities in the newsvendor model with skewed demand," MPRA Paper 36205, University Library of Munich, Germany.
- Athey, Susan, 2002. "Monotone Comparative Statics Under Uncertainty," Scholarly Articles 3372263, Harvard University Department of Economics.
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