The price-setting newsvendor problem with nonnegative linear additive demand

We analyze the price-sensitive newsvendor problem with non-negative linear additive demand. We show that the problem always has an optimal solution and identify random demand distributions for which a unique optimal solution can be computed by showing that, for those distributions, the expected profit is a quasiconcave function of the retail price. (C) 2018 Elsevier B.V. All rights reserved.