Transport contract optimization under information asymmetry: an example

Xavier Brusset and Nico Temme
Additional contact information
Nico Temme: Centrum voor Wiskunde en Informatica, Amsterdam, Netherlands

Econometrics from EconWPA

Abstract: The present paper shows why information asymmetry and bivariate stochastic demand and spot price induce different behaviours and economic inefficiency in a carrier – shipper relationship. An example is offered of a single period, single echelon, shipper-carrier transport model where demand addressed to the shipper and the spot transport price, two exogenous stochastic variables, follow a bivariate exponential probability distribution function. We evaluate the objective functions of the carrier and shipper over one period reiterated with a mix of long-term and short-term procurement strategies under five scenarios of information sharing. Some clues as to ways of solving for other types of bivariates are provided.

Keywords: supply chain management; coordination; information sharing; decision anylisis; bivariate statistics (search for similar items in EconPapers)
JEL-codes: C44 C61 L14 L23 (search for similar items in EconPapers)
Date: 2005-12-07
Note: Type of Document - pdf; pages: 30. A discussion of game theoretic behaviour of a transport service provider and a shipper when demand and price of transport can vary dependently.
View list of references

Downloads: (external link)
http://129.3.20.41/eps/em/papers/0512/0512005.pdf (application/pdf)

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

Access Statistics for this paper

More papers in Econometrics from EconWPA
Series data maintained by EconWPA ().