Final answer:
The News Vendor Problem focuses on inventory decision-making and is not an example of overbooking or yield management, which are concepts used in pricing and reservations to maximize revenue and capacity usage.
Step-by-step explanation:
The News Vendor Problem is an example of a decision-making framework used in inventory management and operations research where the challenge is to decide on the optimal order quantity that minimizes the risks of overstock and understock.
This problem is not an example of overbooking or yield management, although all three concepts deal with uncertain demand and capacity planning.
Rather, the News Vendor Problem specifically focuses on balancing the cost of ordering too much inventory against the cost of ordering too little, considering the demand for a product with a limited selling period, such as newspapers or perishable goods.
Yield management, on the other hand, is a pricing strategy used by companies in industries like airlines, hotels, and advertising, where they price a fixed, perishable resource (such as a seat on a flight) to maximize revenue.
Overbooking is a related concept often used in tandem with yield management, where a company accepts more reservations for a service than its capacity, anticipating some no-shows or cancellations to maximize the use of its resource.