Myopic Loss Aversion on the Wholesale Contract: The Comparison of Students and Professionals in Simulated Retailer's Order

  • 劉 麗珍

Student thesis: Master's Thesis

Abstract

This research extends previous studies to examine the impact of myopic loss aversion under the scenario of newsvendor decision As professionals are generally expected to be more rationale than students this research highlights the variance of ordering decision between professionals and students To examine the impact of feedback on myopic loss aversion we conducted a laboratory experiment programmed in zTree (Fischbacher 2007) in which 6 650 ordering decisions were generated from 91 students and 42 professionals The test outcome shows that professionals order lower than students that implies that professionals have a greater magnitude of myopic loss aversion than students when facing newsvendor issue The result displays that ordering decision with feedback has a lower order quantity than those without feedback that interprets subjects ordering with gain-loss feedbacks are significantly affected by myopic loss aversion The experiment also suggests a significant learning effect in observation of the retailer’s ordering decision This research is noteworthy to both academia and the private sector as it contributes to the decision behavior from the different angles in the supply chain to the expanse that professionals do not necessarily make their decision optimally
Date of Award2019
Original languageEnglish
SupervisorWei-Shiun Chang (Supervisor)

Cite this

Myopic Loss Aversion on the Wholesale Contract: The Comparison of Students and Professionals in Simulated Retailer's Order
麗珍, 劉. (Author). 2019

Student thesis: Master's Thesis