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Collaborative Shipping Under Information Distortion

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Information Systems, Logistics, and Supply Chain (ILS 2016)

Part of the book series: Lecture Notes in Business Information Processing ((LNBIP,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.

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Authors and Affiliations

  1. Research Center for Operations Management, Faculty of Business and Economics, KU Leuven, Leuven, Belgium

    Silvia Valeria Padilla Tinoco & Robert Boute

  2. Department of Information, Logistics and Innovation, School of Business and Economics, VU University Amsterdam, Amsterdam, The Netherlands

    Eirini Spiliotopoulou

  3. Technology and Operations Management Area, Vlerick Business School, Ghent, Belgium

    Robert Boute

Authors
  1. Silvia Valeria Padilla Tinoco
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  2. Eirini Spiliotopoulou
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  3. Robert Boute
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Corresponding author

Correspondence to Robert Boute .

Editor information

Editors and Affiliations

  1. McCoy College of Business, Texas State University, San Marcos, Texas, USA

    Cecilia Temponi

  2. Katholieke Universiteit Leuven, Leuven, Belgium

    Nico Vandaele

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Padilla Tinoco, S.V., Spiliotopoulou, E., Boute, R. (2018). Collaborative Shipping Under Information Distortion. In: Temponi, C., Vandaele, N. (eds) Information Systems, Logistics, and Supply Chain. ILS 2016. Lecture Notes in Business Information Processing, vol 262. Springer, Cham. https://doi.org/10.1007/978-3-319-73758-4_9

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  • DOI: https://doi.org/10.1007/978-3-319-73758-4_9

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  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-319-73757-7

  • Online ISBN: 978-3-319-73758-4

  • eBook Packages: Computer ScienceComputer Science (R0)

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