This paper investigates the capacity decisions of complementary suppliers who produce different components of a product. The suppliers solicit private forecast information from a retailer who has more precise information as compared to the suppliers regarding the market. In this context, the...

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,...