A versatile framework for cooperative hub network development

Research output: Contribution to journalArticleScientificpeer-review

10 Citations (Scopus)

Abstract

This paper introduces a framework for cooperative hub network development. Building a joint physical hub for the transshipment of goods is expensive and, therefore, involves considerable risks for cooperating companies. In a practical setting, it is unlikely that an entire network will be built at once. Rather, the partners will have a more cautious attitude and build hub facilities one by one. In the proposed framework, each time a new hub is introduced, the partners will have the opportunity to decide whether or not they will participate (and thus, invest) in this network extension. In addition, joint cost savings will be allocated to the partners using the Shapley value, a well-known solution concept from cooperative game theory. This framework can accommodate any type of optimisation procedure for network design.
Original languageEnglish
Pages (from-to)210-227
JournalEuropean Journal of Industrial Engineering
Volume4
Issue number2
DOIs
Publication statusPublished - 2010

Fingerprint

Dive into the research topics of 'A versatile framework for cooperative hub network development'. Together they form a unique fingerprint.

Cite this