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Are groups better than individuals at making decisions? An experimental study on newsvendor problem

  • University of Rochester

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

We investigate the differences between groups and individuals in newsvendor ordering behavior by a laboratory experiment under the tournament competitive environment. We also study the association between newsvendor decision making and the decision-making styles measured by the General Decision-making Style (GDMS) inventory. We observe that group decision making is not always superior to individual decision making. Groups only make better ordering decisions and earn higher profit on average than individuals in the low profit condition. In addition, groups take longer time than individuals. Our results suggest that decision-making style is to some extend associated with newsvendor decision making.

Original languageEnglish
Title of host publicationProceedings of the 48th Annual Hawaii International Conference on System Sciences, HICSS 2015
EditorsTung X. Bui, Ralph H. Sprague
PublisherIEEE Computer Society
Pages4252-4261
Number of pages10
ISBN (Electronic)9781479973675
DOIs
StatePublished - Mar 26 2015
Event48th Annual Hawaii International Conference on System Sciences, HICSS 2015 - Kauai, United States
Duration: Jan 5 2015Jan 8 2015

Publication series

NameProceedings of the Annual Hawaii International Conference on System Sciences
Volume2015-March
ISSN (Print)1530-1605

Conference

Conference48th Annual Hawaii International Conference on System Sciences, HICSS 2015
Country/TerritoryUnited States
CityKauai
Period1/5/151/8/15

ASJC Scopus Subject Areas

  • General Engineering

Keywords

  • Competitive environment
  • Decision making
  • Decision-making style
  • Experiment
  • Group
  • Newsvendor problem
  • Team
  • Tournament

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