Research Article
Risk-Averse Newsvendor Model with Strategic Consumer Behavior
Table 1
Notions used in this paper.
| | Product cost | | Customer valuation | | Retail price | | RE equilibrium price for risk-neutral retailer | | RE equilibrium price for risk-averse retailer | | Salvage price | | Order quantity | | Optimal ordering quantity for risk-averse newsvendor model with myopic customers | | RE equilibrium ordering quantity for risk-neutral retailer | | RE equilibrium ordering quantity for risk-averse retailer | | pdf and cdf of the distribution of stochastic demand | | Profit function | | Newsvendor’s utility function |
|
|
