When solving a newsvendor problem, individuals systematically and persistently deviate from the profit maximizing order quantity. Previous research has shown that individuals tend to order too much in a low margin setting and too little in a high margin setting. This “pull to center” effect...

Problem definition: We study the bullwhip effect and analyze the impact of human behavior. We separate rational ordering in response to increasing incoming orders from irrational ordering. Academic/Practical Relevance: Prior research has shown that the bullwhip effect occurs in about two-thirds...

This research analyzes how individual differences affect performance in time-series forecasting. Task performance varies based on an individual’s ability to balance intuitive judgment with cognitive deliberation, as measured by the Cognitive Reflection Test. Decision makers with higher...

We provide results for an efficient analytical valuation of partial moments of the multivariate Gaussian distribution over convex polyhedrons to aid the solution, sensitivity analysis and structural analysis of a large number of two-stage resource acquisition and allocation problems. These...

Several firms make business decisions based on risk specifications or estimates provided by domain-experts. But research on whether the format of risk specifications systematically affects decision making in multi-dimensional environments is scarce. Using laboratory experiments, we show that...