Construal Level and Cognitive Reflection in Newsvendor Games: Unveiling the Influence of Individual Heterogeneity on Decision-Making
Kuldeep Singh
Arkansas Tech University, United States.
Sumanth Cheemalapati
Dakota State University, United States.
George Kurian
Eastern New Mexico University, Mexico.
Prathamesh Muzumdar *
University of Texas at Arlington, United States.
*Author to whom correspondence should be addressed.
Abstract
During the last decade, scholars have studied the behavior of decision-making in newsvendor settings and have identified numerous behavior patterns for deviating from normative behavior. However, there is a dearth of research which have examined the influence of individual heterogeneity on decision-making in newsvendor settings. This study examines the level of construal (Abstract and concrete) using construal level theory (CLT) on performance in newsvendor games. In addition, this study measures the cognitive reflection of individuals using cognitive reflection test (CRT) ex-ante to analyze the true impact of how people construe a problem and its impact on their decision-making.
Keywords: Newsvendor, heterogeneity, construal level theory, cognitive reflection test, supply chain