Because inventory systems are managed or heavily influenced by decision makers, understanding human behaviors in inventory management has become an important research topic. Based on newsvendor decisions, in the literature, it has been argued that a few methods (e.g., ex-post inventory error,...

Based on the newsvendor setting, many behavioral models are proposed to predict biases of decision makers in inventory management. Recently, Nagarajan and Shechter claimed that prospect theory cannot explain the consistent empirical findings (Management Science, 2014, P.1057-1062). However, it...