Gain sharing in horizontal logistic collaboration. A case study in the fresh fruit and vegetables sector

Christof Defryn, Christine Vanovermeire, Kenneth Sörensen, Alex van Breedam, Bart Vannieuwenhuyse and Sven Verstrepen

Working Papers from University of Antwerp, Faculty of Business and Economics

Abstract: This paper applies several cost allocation methods to a real life case study of fresh produce traders, jointly organising their transportation from the auction to a joint transport platform. The allocation may differ depending on whether the costs are divided on a daily basis or aggregated over a longer period. Moreover, the choice of allocation method determines the specific incentive — to grow, to be flexible towards delivery terms — that is given towards the collaborating parties. In conclusion, although the literature on game theory offers some support, the coalition has to determine what it perceives as a ‘fair’ cost allocation.

Pages: 14 pages
Date: 2014-02
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Citations: View citations in EconPapers (1)

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