The newsboy model: Changes in risk and price Academic Article in Scopus uri icon

Abstract

  • In this paper I extend the literature related with the newsboy model by analyzing the effect on orders of changes in risk and price. I show that risk aversion is necessary and sufficient condition for the newsboy to decrease orders when the demand suffers an FSD deterioration in risk, and analyze changes in price including an effect, which has been ignored in the literature. © 2005 The Geneva Association.

Publication date

  • June 1, 2005