1650 B.Keren,J.S.Pliskin European Journal of Operational Research 174(2006)1643-1650 concave and therefore for u(TP(D=))>u(TP(D=B))we must have (u(TP(D="))- u'(TP(D=B)))<0.Therefore, -[u(TP(D=g)-u(TP(D=A)l×(S-c儿d(TP(D=g)-t(TP(D=B)川 -元·MTP(D=B》>0 and (Ratio)>0.口 a0 References Anvari,M.,1987.Optimality criteria and risk in inventory models:The case of the newsboy problem.Journal of Operational Research Society38.625-632. Arrow,J.K.,Karlin,S.,Scarf,H.,1958.Studies in the Mathematical Theory of Inventory and Production.Stanford University Press, Stanford,CA. Atkinson,A.,1979.Incentives,uncertainty,and risk in the newsboy problem.Decision Sciences 10.341-353. Chung,K.,1990.Risk in inventory models:The case of the newsboy problem,optimality conditions.Journal of Operational Research Society41.173-176. Eeckhoudt,L.,Gollier,C.,Schlesinger,H.,1995.The risk-averse (and prudent)newsboy.Management Science 41 (5),786-794. Hadley,G..Whitin,T.M.,1963.Analysis of Inventory Systems.Prentice-Hall,Englewood,Cliffs,NJ. Ismail,B.E..Loudberback,J.G.,1979.Optimizing and satisfying in stochastic cost-volume-analysis.Decision Sciences 10.205-217. Kabak.I.W.,Schiff,A.I.1978.Inventory models and management objectives.Sloan Management Review 19(2).53-59. Khouja,M.,1999.The single-period(newsvendor)problem:Literature review and suggestions for further research.Omega 27,537- 553. Lau,H.S.,1980.The newsboy problem under alternative optimization objectives.Journal of the Operations Research Society 31 (1), 525-535. Levy,H.,Sarnat,M.,1984.Portfolio and Investment Selection:Theory and Practice.Prentice-Hall International.Inc. Pratt,W.J.,1964.Risk aversion in the small and in the large.Econometrica 32,122-136. Schweitzer,M.E..Cachon,G.P.,2000.Decision bias in the newsvendor problem with a known demand distribution:Experimental evidence.Management Science 46(3),404-421. Von Neumann,J.,Morgenstern,O..1944.Theory of Games and Economics Behavior.Princeton University Press,Princeton,NJ. Within.T.M.,1955.Inventory control and price theory.Management Science 2,61-80.concave and therefore for u0 ðTPðDe ¼ Q ÞÞ > u0 ðTPðDe ¼ BÞÞ we must have ðu0 ðTPðDe ¼ Q ÞÞ u0 ðTPðDe ¼ BÞÞÞ < 0. Therefore, ½uðTPðDe ¼ Q ÞÞ uðTPðDe ¼ AÞÞ  hðS cÞ½u0 ðTPðDe ¼ Q ÞÞ u0 ðTPðDe ¼ BÞÞ p u0 ðTPðDe ¼ BÞÞi > 0 and oðRatioÞ oQ > 0. References Anvari, M., 1987. Optimality criteria and risk in inventory models: The case of the newsboy problem. Journal of Operational Research Society 38, 625–632. Arrow, J.K., Karlin, S., Scarf, H., 1958. Studies in the Mathematical Theory of Inventory and Production. Stanford University Press, Stanford, CA. Atkinson, A., 1979. Incentives, uncertainty, and risk in the newsboy problem. Decision Sciences 10, 341–353. Chung, K., 1990. Risk in inventory models: The case of the newsboy problem, optimality conditions. Journal of Operational Research Society 41, 173–176. Eeckhoudt, L., Gollier, C., Schlesinger, H., 1995. The risk-averse (and prudent) newsboy. Management Science 41 (5), 786–794. Hadley, G., Whitin, T.M., 1963. Analysis of Inventory Systems. Prentice-Hall, Englewood, Cliffs, NJ. Ismail, B.E., Loudberback, J.G., 1979. Optimizing and satisfying in stochastic cost-volume-analysis. Decision Sciences 10, 205–217. Kabak, I.W., Schiff, A.I., 1978. Inventory models and management objectives. Sloan Management Review 19 (2), 53–59. Khouja, M., 1999. The single-period (newsvendor) problem: Literature review and suggestions for further research. Omega 27, 537– 553. Lau, H.S., 1980. The newsboy problem under alternative optimization objectives. Journal of the Operations Research Society 31 (1), 525–535. Levy, H., Sarnat, M., 1984. Portfolio and Investment Selection: Theory and Practice. Prentice-Hall International, Inc. Pratt, W.J., 1964. Risk aversion in the small and in the large. Econometrica 32, 122–136. Schweitzer, M.E., Cachon, G.P., 2000. Decision bias in the newsvendor problem with a known demand distribution: Experimental evidence. Management Science 46 (3), 404–421. Von Neumann, J., Morgenstern, O., 1944. Theory of Games and Economics Behavior. Princeton University Press, Princeton, NJ. Within, T.M., 1955. Inventory control and price theory. Management Science 2, 61–80. 1650 B. Keren, J.S. Pliskin / European Journal of Operational Research 174 (2006) 1643–1650