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...

A major obstacle to wider adoption of the newsvendor model is the difficulty of obtaining its key input---the demand distribution forecast, specifically when the products are new and no historical data are available. In such cases, judgmental forecasting methods are a commonly suggested...