We modify the classic single-period inventory management problem by assuming that the newsvendor is expectation-based loss averse according to  Kőszegi and Rabin (2006, 2007). We show that the expectation-based loss-averse newsvendor orders less than the profit-maximizing quantity. Moreover,...

Although optimal forms of supply chain contracts have been widely studied in the literature, it has also been observed that decision makers fail to make optimal decisions in these contract setups. In this research, we propose different approaches to improve the performance of supply chain...

In this laboratory study, we investigate the interactive behaviors that develop over a perceived long-term contractual relationship. Specifically, three types of contracts are examined under a two-echelon supply chain setting with stochastic demand: wholesale price contracts, buyback contracts...