Please use this identifier to cite or link to this item:
http://hdl.handle.net/10397/81344
DC Field | Value | Language |
---|---|---|
dc.contributor | Department of Industrial and Systems Engineering | - |
dc.creator | Chan, FTS | - |
dc.creator | Xu, XS | - |
dc.date.accessioned | 2019-09-20T00:55:08Z | - |
dc.date.available | 2019-09-20T00:55:08Z | - |
dc.identifier.uri | http://hdl.handle.net/10397/81344 | - |
dc.language.iso | en | en_US |
dc.publisher | Molecular Diversity Preservation International (MDPI) | en_US |
dc.rights | © 2019 by the authors. Licensee MDPI, Basel, Switzerland. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license (http://creativecommons.org/licenses/by/4.0/). | en_US |
dc.rights | The following publication Chan, F.T.S.; Xu, X. The Loss-Averse Retailer’s Order Decisions Under Risk Management. Mathematics 2019, 7, 595, 1-16 is available at https://dx.doi.org/10.3390/math7070595 | en_US |
dc.subject | Newsvendor model | en_US |
dc.subject | Conditional value-at-risk | en_US |
dc.subject | Loss-averse | en_US |
dc.subject | Optimal order quantity | en_US |
dc.title | The loss-averse retailer's order decisions under risk management | en_US |
dc.type | Journal/Magazine Article | en_US |
dc.identifier.spage | 1 | - |
dc.identifier.epage | 16 | - |
dc.identifier.volume | 7 | - |
dc.identifier.issue | 7 | - |
dc.identifier.doi | 10.3390/math7070595 | - |
dcterms.abstract | This paper characterizes the retailer's loss aversion by introducing a loss aversion coefficient and proposes a new loss aversion utility function for the retailer. To hedge against the risk arising from the uncertain market demand, we use the Conditional Value-at-Risk (CVaR) measure to quantify the potential risks and obtain the optimal order quantity for the retailer to maximize the CVaR objective of loss aversion utility. It is shown that that the optimal order quantity for a retailer to maximize the expected loss aversion utility is smaller than expected profit maximizing (EPM) order quantity in the classical newsvendor model, which can help to explain decision bias in the newsvendor model. This study shows that the optimal order quantity with the CVaR objective can decrease in retail price under certain conditions, which has never occurred in the newsvendor literature. With the optimal order quantity under the CVaR objective, it is proved that the retailer's expected loss aversion utility is decreasing in the confidence level. This confirms the fact that high return means high risk, while low risk comes with low return. Based on the results, several management insights are suggested for the loss-averse newsvendor model. | - |
dcterms.accessRights | open access | en_US |
dcterms.bibliographicCitation | Mathematics, July 2019, v. 7, no. 7, 595, p. 1-16 | - |
dcterms.isPartOf | Mathematics | - |
dcterms.issued | 2019 | - |
dc.identifier.isi | WOS:000478765700003 | - |
dc.identifier.scopus | 2-s2.0-85068852908 | - |
dc.identifier.eissn | 2227-7390 | - |
dc.identifier.artn | 595 | - |
dc.description.validate | 201909 bcrc | - |
dc.description.oa | Version of Record | en_US |
dc.identifier.FolderNumber | OA_Scopus/WOS | en_US |
dc.description.pubStatus | Published | en_US |
Appears in Collections: | Journal/Magazine Article |
Files in This Item:
File | Description | Size | Format | |
---|---|---|---|---|
Chan_Loss-Averse_Retailer_Order.pdf | 289.32 kB | Adobe PDF | View/Open |
Page views
118
Last Week
2
2
Last month
Citations as of Apr 14, 2024
Downloads
101
Citations as of Apr 14, 2024
SCOPUSTM
Citations
6
Citations as of Apr 12, 2024
WEB OF SCIENCETM
Citations
4
Citations as of Apr 18, 2024
Google ScholarTM
Check
Altmetric
Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.