Newsvendor Selling to Loss-Averse Consumers with Stochastic Reference Points

摘要: We study a newsvendor who sells perishable asset over repeated periods to consumers with given consumption valuation for the product. The market size in each period is random, following stationary distribution. Consumers are loss averse stochastic reference points that represent their beliefs about possible price and product availability. Given distribution of points, they choose purchase plans maximize expected total utility, including gain-loss before visiting store, follow store. In anticipation consumers' plans, period, demand uncertainty resolves, firm chooses an initial order quantity. After contingent depending on realization, option clearing inventory by charging sale price, otherwise, posting full price. Over periods, interaction firm’s operational decisions ordering pricing and...