Newsvendor model with non-zero reference point under cumulative prospect theory

来源 :中国系统工程学会 | 被引量 : 0次 | 上传用户:cqssq
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  This paper considers a loss-averse newsvendor with a non-zero reference point.We first introduce a piecewise-linear value function and formulate the newsvendor model by evaluating the cumulative prospects.The first-order condition is developed based on the concavity of the cumulative prospect function,by which the model can be solved.
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