Co-opetition effect of promised-delivery-time sensitive demand on air cargo carriers’ big data investment and demand signal sharing decisions

Baozhuang Niu, Zhipeng Dai and Xiaopo Zhuo

Transportation Research Part E: Logistics and Transportation Review, 2019, vol. 123, issue C, 29-44

Abstract: We study two competing air cargo carriers’ incentives of cooperation with promised-delivery-time (PDT) sensitive demand, where Carrier 1 may invest in big data and share demand signal with Carrier 2. When the carriers focus on demand competition, Carrier 1’s big data investment may benefit itself and the rival, while Carrier 1 never shares its updated demand signal. When the carriers focus on PDT competition, Carrier 2 does not prefer Carrier 1’s big data investment when the PDT competition is fierce. Interestingly, Carrier 1 may be willing to share its updated demand signal and a “win-win” situation occurs.

Keywords: Air cargo operations; Big data investment; Demand signal sharing; Promised delivery time; Co-opetition (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (17)

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DOI: 10.1016/j.tre.2019.01.011

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