The impacts of distributional and peer-induced fairness concerns on the decision-making of order allocation in logistics service supply chain

Weihua Liu, Di Wang, Xinran Shen, Xiaoyu Yan and Wanying Wei

Transportation Research Part E: Logistics and Transportation Review, 2018, vol. 116, issue C, 102-122

Abstract: This paper investigates the order allocation of logistics service supply chain (LSSC) that consists of one logistics service integrator (LSI) and two competing functional logistics service providers (FLSPs) who participate the allocation successively. FLSPs have different fairness concerns. It is found that the optimal utility of LSI increase with the latter FLSP’s peer-induced fairness concern, and decrease with the incumbent FLSP’s distributional fairness concern. Because LSI expects FLSPs with more of peer-induced fairness concern and less of distributional fairness concern, an incentive contract is proposed which could improve LSI’s utility when the parameters meet certain conditions.

Keywords: Logistics service supply chain; Order allocation; Distribution fairness concern; Peer-induced fairness concern (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (52)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1366554517309985
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:transe:v:116:y:2018:i:c:p:102-122

Ordering information: This journal article can be ordered from
http://www.elsevier.com/wps/find/journaldescription.cws_home/600244/bibliographic
http://www.elsevier. ... 600244/bibliographic

DOI: 10.1016/j.tre.2018.05.006

Access Statistics for this article

Transportation Research Part E: Logistics and Transportation Review is currently edited by W. Talley

More articles in Transportation Research Part E: Logistics and Transportation Review from Elsevier
Bibliographic data for series maintained by Catherine Liu ().