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Chinese Journal of Management Science ›› 2005, Vol. ›› Issue (6): 64-68.

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The Loss Averse Newsboy —— The Solution of Newsboy Problem under Prospect Theory

WEN Ping   

  1. Xinjiang Institute of Finance and Economics, Urumchi 830012, China
  • Received:2004-09-23 Revised:2005-10-25 Online:2005-12-28 Published:2012-03-07

Abstract: Under the new decision making theory-prospect theory,this paper dicusses the newsboy problem and gives the solution of newsboy problem for loss aversion newsboy.Finally,comparative static effects of changes in the various price and cost are determined and related to the newsboy’s loss aversion.

Key words: loss aversion, newsboy problem, prospect theory, decision making

CLC Number: