Collaborative shipping under information distortion

Silvia Valeria Padilla Tinoco, Eirini Spiliotopoulou, Robert Boute

Research output: Chapter in Book/Report/Conference proceedingChapterScientificpeer-review

Abstract

© Springer International Publishing AG 2018. 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.
Original languageEnglish
Title of host publicationInternational Conference on Information Systems, Logistics and Supply Chain (ILS 2016
Subtitle of host publicationInformation Systems, Logistics, and Supply Chain
PublisherSpringer Verlag
Pages125-137
ISBN (Print)9783319737577
DOIs
Publication statusPublished - 2018
Externally publishedYes

Publication series

NameLecture Notes in Business Information Processing
Volume262

Fingerprint

Shipping
Information distortion
Incentives
Cost allocation
Shapley value
Allocation rules
Proportion
Truth-telling
Stand-alone cost
Logistics cost
Rule-based

Cite this

Padilla Tinoco, S. V., Spiliotopoulou, E., & Boute, R. (2018). Collaborative shipping under information distortion. In International Conference on Information Systems, Logistics and Supply Chain (ILS 2016: Information Systems, Logistics, and Supply Chain (pp. 125-137). (Lecture Notes in Business Information Processing; Vol. 262). Springer Verlag. https://doi.org/10.1007/978-3-319-73758-4_9
Padilla Tinoco, Silvia Valeria ; Spiliotopoulou, Eirini ; Boute, Robert. / Collaborative shipping under information distortion. International Conference on Information Systems, Logistics and Supply Chain (ILS 2016: Information Systems, Logistics, and Supply Chain. Springer Verlag, 2018. pp. 125-137 (Lecture Notes in Business Information Processing).
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Padilla Tinoco, SV, Spiliotopoulou, E & Boute, R 2018, Collaborative shipping under information distortion. in International Conference on Information Systems, Logistics and Supply Chain (ILS 2016: Information Systems, Logistics, and Supply Chain. Lecture Notes in Business Information Processing, vol. 262, Springer Verlag, pp. 125-137. https://doi.org/10.1007/978-3-319-73758-4_9

Collaborative shipping under information distortion. / Padilla Tinoco, Silvia Valeria; Spiliotopoulou, Eirini; Boute, Robert.

International Conference on Information Systems, Logistics and Supply Chain (ILS 2016: Information Systems, Logistics, and Supply Chain. Springer Verlag, 2018. p. 125-137 (Lecture Notes in Business Information Processing; Vol. 262).

Research output: Chapter in Book/Report/Conference proceedingChapterScientificpeer-review

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AB - © Springer International Publishing AG 2018. 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.

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DO - 10.1007/978-3-319-73758-4_9

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BT - International Conference on Information Systems, Logistics and Supply Chain (ILS 2016

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Padilla Tinoco SV, Spiliotopoulou E, Boute R. Collaborative shipping under information distortion. In International Conference on Information Systems, Logistics and Supply Chain (ILS 2016: Information Systems, Logistics, and Supply Chain. Springer Verlag. 2018. p. 125-137. (Lecture Notes in Business Information Processing). https://doi.org/10.1007/978-3-319-73758-4_9