Selling to the Socially Interactive Consumer: Order More or Less?

Selling to the Socially Interactive Consumer: Order More or Less? This paper studies the newsvendor problem in the presence of consumer behavior, specifically, social interaction. We show that deterministic consumer valuation on products derived from social interaction can be an advantage for firms. This paper examines the implications of random consumer product valuation and a lower threshold number of subscribers to the proposed deal. Several implications have been yielded.