In this paper, we study a regretful seller’s problem of selling a fixed number of goods over a finite and known time horizon. The seller engages in counterfactual thinking to compare her selected price with other forgone alternatives. If a forgone alternative (ex post) generates a better...

Overconfidence is one of the most consistent, powerful, and widespread cognitive biases affecting decision making in situations characterized by random outcomes. In this paper, we study the effects and implications of overconfidence in a competitive newsvendor setting. In this context,...

Inventory inaccuracy is common at retailers. At many retailers, a cash register records incoming orders and outgoing sales, but not the demand or the shrinkage. The shrinkage refers to spoilage or pilferage of inventory. The demand differs from the sales in the periodic-review lost-sales...