Dual sourcing practices have become increasingly popular with firms. To examine the actual behavior in such settings, we conducted a laboratory experiment with a multi-period single-echelon inventory model with a fast, expensive and a slow, inexpensive supplier. Compared to single-sourcing, the...

Newsvendor decision making is ubiquitous in the global economy. Very often, newsvendor decision makers are overworked; thus, making ordering decisions is one of myriad things on their plate. They do not have the energy to focus solely on the newsvendor decisions and yet have to make them under...

In this paper, we discuss discrete choice theory and show how this theory can be used to quantify learning effects in experimental studies. We argue why the ordering quantities in newsvendor experiments should follow a multinomial logit distribution. We provide a robustness analysis to explain...