Measuring How Decision Support Systems Improve Newsvendors’ Performance: The Subjects’ Version

Abstract

Despite the emerging contribution of machine automation, artificial intelligence and information systems, humans remain yet the most fragile ring of any organization. Decision support systems are widespread, supporting us to decide among uncertainties, such as weather conditions, suppliers’ performances and financial opportunities, but how humans take into account this information and, most of all, how they trust their own management knowledge is a controversial issue. This paper assesses, by means of a controlled experiment and ex post interviews, how individuals consider and use decision support systems in the context of the Newsvendor Problem. In accordance with prior research, the results show that individuals’ order quantities are pull-to-center biased. Moreover, ex post direct interviews suggest that (i) the individuals’ trust in decision support systems is not blind; (ii) individuals do not play the business game as a real task, (iii) they are biased by the type of incentive promised and (iv) they seem not skilled or trained enough. Ex post interviews shed a new light on controlled human experiments: they should be better analyzed and re-engineered.