Jörnsten, Kurt; Nonås, Sigrid Lise; Sandal, Leif K.; … - Institutt for foretaksøkonomi, Norges Handelshøyskole … - 2011
In this paper we consider the newsvendor model with real options. We consider a mixed contract where the retailer can … items. We provide a closed form solution to this mixed contract when the demand is discrete and study some of its properties …. We also offer an explicit solution for the continuous case. In particular we demonstrate that a mixed contract may be …
