Decision Biases of Strategic Customers with Private Product-Value Information: An Experimental Study

doi:10.1111/poms.12989

	Decision Biases of Strategic Customers with Private Product-Value Information: An Experimental Study
	Song, Yanan 3,4; Zhao, Xiaobo 2; Zhu, Wanshan 2; Chen, Yefen 1
刊名	PRODUCTION AND OPERATIONS MANAGEMENT
	2019-05-01
卷号	28 期号:5 页码:1305-1319
关键词	strategic customer game experiment decision bias
ISSN号	1059-1478
DOI	10.1111/poms.12989
英文摘要	We consider a random number of strategic customers who compete for a limited stock of products, and decide whether to buy a product at full price now or at a discount price by waiting until the end of the selling season. This decision is not trivial, as waiting leads to not only a lower cost, but also less value due to a possible stockout caused by the limited product quantity. The equilibrium analysis of the competition game based on a theoretical model predicts that strategic customers wait for the discount price when their private product valuations at the end of the selling season are above a threshold. We conduct a laboratory experiment to study strategic customers' decisions and find that significantly fewer customers wait than predicted when the stock quantity is high, but not when the stock quantity is low. Our behavioral models with their structural estimates reveal that the strategic customers' behavior is caused by decision biases of bounded rationality and risk aversion. These findings imply that a retailer should take account of decision biases when deciding on the optimal stock quantity because the decision biases of strategic customers benefit the retailer when stock quantity is high, but may not benefit them when stock quantity is low.
资助项目	National Natural Science Foundation of China[71761137004] ; Postdoctoral Science Foundation of China[2017M620941] ; China Postdoctoral Science Foundation[2017LH042] ; National Natural Science of China[71501004] ; Chinese Academy of Sciences Joint Funding for Outstanding Postdoctoral Programs[2017LH042]
WOS研究方向	Engineering ; Operations Research & Management Science
语种	英语
出版者	WILEY
WOS记录号	WOS:000467569300014
内容类型	期刊论文
源URL	[http://ir.amss.ac.cn/handle/2S8OKBNM/34655]
专题	中国科学院数学与系统科学研究院
通讯作者	Zhu, Wanshan
作者单位	1.Cainiao Smart Logist Network, Hangzhou 310000, Zhejiang, Peoples R China 2.Tsinghua Univ, Dept Ind Engn, Beijing 100084, Peoples R China 3.Chinese Acad Sci, Acad Math & Syst Sci, 55 Zhongguancun East Rd, Beijing 100190, Peoples R China 4.Univ Sci & Technol Beijing, Donlinks Sch Econ & Management, 30 Xueyuan Rd, Beijing 100083, Peoples R China
推荐引用方式 GB/T 7714	Song, Yanan,Zhao, Xiaobo,Zhu, Wanshan,et al. Decision Biases of Strategic Customers with Private Product-Value Information: An Experimental Study[J]. PRODUCTION AND OPERATIONS MANAGEMENT,2019,28(5):1305-1319.
APA	Song, Yanan,Zhao, Xiaobo,Zhu, Wanshan,&Chen, Yefen.(2019).Decision Biases of Strategic Customers with Private Product-Value Information: An Experimental Study.PRODUCTION AND OPERATIONS MANAGEMENT,28(5),1305-1319.
MLA	Song, Yanan,et al."Decision Biases of Strategic Customers with Private Product-Value Information: An Experimental Study".PRODUCTION AND OPERATIONS MANAGEMENT 28.5(2019):1305-1319.