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Addressing the sample size problem in behavioural operational research: Simulating the newsvendor problem

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journal contribution
posted on 27.06.2016, 13:16 authored by Stewart Robinson, Stavrianna Dimitriou, Katherine Kotiadis
Laboratory based experimental studies with human participants are beneficial for testing hypotheses in behavioural operational research. However, such experiments are not without their problems. One specific problem is obtaining a sufficient sample size, not only in terms of the number of participants, but also the time they are willing to devote to an experiment. In this paper we explore how agent-based simulation can be used to address the sample size problem and demonstrate the approach in the newsvendor setting. The decision-making strategies of a small sample of individual decision-makers are determined through laboratory experiments. The interactions of these suppliers and retailers are then simulated using an agent-based simulation (ABS) to generate a large sample set of decisions. With only a small number of participants, we demonstrate that it is possible to produce similar results to previous experimental studies that involved much larger sample sizes. We conclude that agent-based simulation provides the potential to extend the scope of experimental research in behavioural operational research.

History

School

  • Business and Economics

Department

  • Business

Published in

Journal of the Operational Research Society

Volume

68

Issue

3

Pages

253 - 268

Citation

ROBINSON, S., DIMITRIOU, S. and KOTIADIS, K., 2017. Addressing the sample size problem in behavioural operational research: Simulating the newsvendor problem. Journal of the Operational Research Society, 68 (3), pp. 253-268.

Publisher

© Operational Research Society. Published by Palgrave Macmillan

Version

AM (Accepted Manuscript)

Publisher statement

This work is made available according to the conditions of the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International (CC BY-NC-ND 4.0) licence. Full details of this licence are available at: https://creativecommons.org/licenses/by-nc-nd/4.0/

Acceptance date

15/06/2016

Publication date

2016-10-07

Copyright date

2016

Notes

This is a post-peer-review, pre-copyedit version of an article published in Journal of the Operational Research Society. The definitive publisher-authenticated version ROBINSON, S., DIMITRIOU, S. and KOTIADIS, K., 2017. Addressing the sample size problem in behavioural operational research: Simulating the newsvendor problem. Journal of the Operational Research Society, 68 (3), pp. 253-268 is available online at: http://dx.doi.org/10.1057/s41274-016-0016-3

ISSN

0160-5682

eISSN

1476-9360

Language

en