Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
4959928 | European Journal of Operational Research | 2017 | 11 Pages |
Abstract
In this paper we define bounded rationality in terms of probabilistic cost efficiency. This establishes a framework where bounded rationality can be examined rigorously by statistical methods. We apply this theory to data from laboratory experiments on the newsvendor model. We enter into a theoretical discussion of the classical pull-to-center effect and explain why underorders are typically larger than overorders.
Related Topics
Physical Sciences and Engineering
Computer Science
Computer Science (General)
Authors
Jan Ubøe, Jonas Andersson, Kurt Jörnsten, Jostein Lillestøl, Leif Sandal,