TY - GEN
T1 - Collaborative shipping under information distortion
AU - Padilla Tinoco, Silvia Valeria
AU - Spiliotopoulou, Eirini
AU - Boute, Robert
PY - 2018
Y1 - 2018
N2 - 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.
AB - 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.
UR - http://www.scopus.com/inward/record.url?scp=85041493583&partnerID=8YFLogxK
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U2 - 10.1007/978-3-319-73758-4_9
DO - 10.1007/978-3-319-73758-4_9
M3 - Conference contribution
AN - SCOPUS:85041493583
SN - 9783319737577
VL - 262
T3 - Lecture Notes in Business Information Processing
SP - 125
EP - 137
BT - Information Systems, Logistics, and Supply Chain
A2 - Temponi, C.
A2 - Vandaele, N.
PB - Springer/Verlag
T2 - 6th International Conference on Information Systems, Logistics, and Supply Chain, ILS 2016
Y2 - 1 June 2016 through 4 June 2016
ER -
