The sciences of the artificial (3rd ed.)
The sciences of the artificial (3rd ed.)
Mersenne twister: a 623-dimensionally equidistributed uniform pseudo-random number generator
ACM Transactions on Modeling and Computer Simulation (TOMACS) - Special issue on uniform random number generation
A comparison of five steady-state truncation heuristics for simulation
Proceedings of the 32nd conference on Winter simulation
Business Dynamics
Selling to the Newsvendor: An Analysis of Price-Only Contracts
Manufacturing & Service Operations Management
Computer Simulation in Management Science
Computer Simulation in Management Science
Simulation: The Practice of Model Development and Use
Simulation: The Practice of Model Development and Use
Designing And Managing The Supply Chain
Designing And Managing The Supply Chain
Managing Business Complexity: Discovering Strategic Solutions with Agent-Based Modeling and Simulation
Simulation Modeling and Analysis (McGraw-Hill Series in Industrial Engineering and Management)
Simulation Modeling and Analysis (McGraw-Hill Series in Industrial Engineering and Management)
Automating DES output analysis: how many replications to run
Proceedings of the 39th conference on Winter simulation: 40 years! The best is yet to come
Manufacturing & Service Operations Management
Proceedings of the Winter Simulation Conference
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Suppliers and retailers in the newsvendor setting need to submit their pricing and inventory decisions respectively, well before actual customer demand is realized. In the literature they have both been typically considered as perfectly rational optimizers, exclusively interested in their own respective benefits. Under the above set of conditions the wholesale price-only contract has long been analytically proven as inefficient. We asked real human subjects to act as suppliers or retailers in simulation games performed in the laboratory. We found their decisions to significantly deviate from the perfectly rational decisions. By using Agent Based Simulation as the evaluation tool, we investigated the effect of their varying individual preferences on the contract's efficiency. In doing so we established sufficient evidence that the contract can emerge as efficient, in spite of the underlying strategies' under-performances. This counter-intuitive result fully supports the contract's long observed wide popularity.