Mean-variance analysis of the newsvendor problem with price-dependent, isoelastic demand.

•Presented a model for price-inventory decision under a mean-variance criterion.•Results in terms of the lost-sales rate elasticity for a managerial interpretation.•Found sufficient conditions for the unimodality of risk-sensitive problems.•Complements existing lost sales rate elasticity results in risk-neutral conditions.•Presented numerical examples that endorse our results.