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    Collaborative Shipping Under Information Distortion

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    Publication type
    Journal article
    Author
    Padilla Tinoco, Silvia Valeria
    Spiliotopoulou, Eirini
    Boute, Robert
    Publication Year
    2018
    Journal
    Lecture Notes in Business Information Processing
    Publication Volume
    262
    
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    Abstract
    We examine the incentives for a firm to provide non-truthful demand information under a two-company shipping collaboration. We analyze how distorted demand reporting impacts the logistics costs of each individual company in the collaboration and how this impacts the stability of the collaboration agreement. We find that when the cost allocation proportions are agreed ex-ante based on the reported demand, companies have an incentive to deflate their demand when simple cost allocation rules are used; only when the Shapley value is in place, companies have no incentive to distort their demand information. When the cost allocation proportions are calculated ex-post, based on realized demand, the truth-telling strategy is dominant when the Shapley value or an allocation rule based on the demand or stand-alone costs is in place.
    Knowledge Domain/Industry
    Operations & Supply Chain Management
    DOI
    10.1007/978-3-319-73758-4_9
    URI
    http://hdl.handle.net/20.500.12127/5894
    ae974a485f413a2113503eed53cd6c53
    10.1007/978-3-319-73758-4_9
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