Abstract:We report on the findings of five controlled experiments that test the effectiveness of proposed interventions aiming to improve both the process and outcomes of decision making when performing the newsvendor task. We use eye‐tracking technology aided by interviews to gain new insights into people's cognitive processes. Our results confirm that human newsvendors exhibit the tendency of mean‐reverting demand prediction using past demand even when the demand is independent and identically distributed (i.i.d.). T… Show more
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