Estimating collaborative profits under varying partner characteristics and strategies

Christine Vanovermeire, Daniel Palhazi Cuervo and Kenneth Sörensen

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

Abstract: Horizontal logistic collaboration leads to large profits when the right coalition is formed. Most of the previous research however explains the profit differences using market conditions on coalitional level. We show that the level of profit is highly dependent on finding a correct combination of partners. By estimating a model using the average order size, number of orders and maximal delay of each partner separately, as well as the interaction effects of these parameters, the possible number of profitable situations that can be identified significantly increases. Finally, it is demonstrated that cost allocation plays an important role when selecting a partner to collaborate with.

Keywords: Horizontal collaboration; Cost allocation; Profit estimation; Vehicle routing (search for similar items in EconPapers)
Pages: 28 pages
Date: 2013-12
New Economics Papers: this item is included in nep-cse
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:ant:wpaper:2013031

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