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...

This article provides an overview and guide to implementing heteroskedaticity-based instrumental variables (HBIV) in regression models with endogeneity, i.e., one or more of the regressors are correlated with the disturbance term. We discuss the problem of implementing standard instrumental...