In an experimental newsvendor setting we investigate three phenomena: Level behavior ― the decision-maker's average ordering tendency; adjustment behavior ― the tendency to adjust period-to-period order quantities; and observation bias ― the tendency to let the degree of demand feedback...

We model a dynamic purchase context in which a consumer is uncertain about the product's valuation. The consumer has two purchase opportunities for the product: forward purchase in period 1 or spot purchase in period 2. Two forms of regret are considered: buyer's regret over the money paid in...