Article ID: | iaor2004341 |
Country: | Netherlands |
Volume: | 31 |
Issue: | 1 |
Start Page Number: | 63 |
End Page Number: | 65 |
Publication Date: | Jan 2003 |
Journal: | Operations Research Letters |
Authors: | Lippman Steven A., McCardle Kevin F. |
Keywords: | mobile telephones |
Employing an order relation that is more restrictive than second-order stochastic dominance, our analysis reveals when increased variability in monthly usage of one's cell phone induces an increase in the base amount purchased and when it induces a decrease. We also give conditions under which increased variability leads to an increase in expected cost.