Call Center Delay Announcement Using a Newsvendor-Like Performance Criterion

Newsvendor pull-to-center reconsidered

A Working Paper is the author's intellectual property. It is intended as a means to promote research to interested readers. Its content should not be copied or hosted on any server without written permission from [email protected] Click here to access the INSEAD Working Paper collection Abstract In the newsvendor problem, a pull-to-center effect has been asserted, whereby subjects are ...

Announcement and Call for Papers

A Risk-Averse Newsvendor Model Under CVaR Decision Criterion

The classical risk-neutral newsvendor problem is to decide the order quantity to maximize the one period expected pro.t under a given demand distribution. In this paper we consider a risk-averse newsvendor with a stochastic price-dependent demand. We use the Conditional Value-at-Risk (CVaR), a risk measure commonly used in finance, as the decision criterion. The aim of our study is to investiga...

A risk-averse competitive newsvendor problem under the CVaR criterion

We study a risk-averse newsvendor problem with quantity competition and price competition. Under the Conditional Value-at-Risk (CVaR) criterion, we characterize the optimal quantity and pricing decisions under both quantity and price competition. For quantity competition, we consider two demand splitting rules, namely proportional demand allocation and demand reallocation. Although competition ...

Newsvendor problem with random shortage cost under a risk criterion

We study profit maximization vs risk approaches for the standard newsvendor problemwith uncertainty in demand as well as a generalized version with uncertainty in the shortage cost (as often applies in practice). We consider two well-known risk approaches: Value-at-Risk (VaR) included as a constraint and Conditional Value-at-Risk (CVaR). We first derive the explicit expressions of the optimal s...