Download This PaperComment on 'News-vendor Demand Chasing Revisited'
Management Science, Forthcoming
4 Pages Posted: 3 Feb 2020
Date Written: August 20, 2019
Abstract
Based on a simulation, Lau and Bearden (2013) recommended using correlation of orders with lagged demand to measure chasing behavior. They concluded that measuring chasing with regression based on partial adjustment is prone to false positives. We show the purported false positives are due to auto-correlation and recommend using partial-adjustment regression-based approaches to evaluate chasing.
Keywords: Behavioral Operations, Demand Chasing, News-vendor, Anchor and Adjustment
Suggested Citation: Suggested Citation
Kirshner, Samuel and Moritz, Brent, Comment on 'News-vendor Demand Chasing Revisited' (August 20, 2019). Management Science, Forthcoming, Available at SSRN: https://ssrn.com/abstract=3517110
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