Web Based Capacity Allocation Strategies for Customers with Heterogeneous Preferences
Electronic Commerce Research
Asymmetric Consumer Learning and Inventory Competition
Management Science
Technical Note---A Risk-Averse Newsvendor Model Under the CVaR Criterion
Operations Research
Joint advertising and ordering strategies for perishable product with emergency ordering
CCDC'09 Proceedings of the 21st annual international conference on Chinese control and decision conference
Operational Flexibility and Financial Hedging: Complements or Substitutes?
Management Science
Computers and Industrial Engineering
Supply Chain Competition with Multiple Manufacturers and Retailers
Operations Research
An Elasticity Approach to the Newsvendor with Price-Sensitive Demand
Operations Research
The Newsvendor Problem with Advertising Revenue
Manufacturing & Service Operations Management
Manufacturing & Service Operations Management
A note on demand functions with uncertainty
Operations Research Letters
On the modeling of demand spill for a stochastic demand system under competition
Operations Research Letters
Inventory control problem with freight cost and stochastic demand
Operations Research Letters
Quantifying supply chain ineffectiveness under uncoordinated pricing decisions
Operations Research Letters
Optimal replenishment policy for product with season pattern demand
Operations Research Letters
Salesforce Contracting Under Demand Censorship
Manufacturing & Service Operations Management
A decision support system for mean-variance analysis in multi-period inventory control
Decision Support Systems
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We consider a single-period inventory model in which a risk-averse retailer faces uncertain customer demand and makes a purchasing-order-quantity and a selling-price decision with the objective of maximizing expected utility. This problem is similar to the classic newsvendor problem, except: (a) the distribution of demand is a function of the selling price, which is determined by the retailer; and (b) the objective of the retailer is to maximize his/her expected utility. We consider two different ways in which price affects the distribution of demand. In the first model, we assume that a change in price affects the scale of the distribution. In the second model, a change in price only affects the location of the distribution. We present methodology by which this problem with two decision variables can be simplified by reducing it to a problem in a single variable. We show that in comparison to a risk-neutral retailer, a risk-averse retailer in the first model will charge a higher price and order less; where as, in the second model a risk-averse retailer will charge a lower price. The implications of these findings for supply-chain strategy and channel design are discussed. Our research provides a better understanding of retailers' pricing behavior that could lead to improved price contracts and channel-management policies.