Exogenous coalition formation in the e-marketplace based on geographical proximity
Joanna Tyrowicz () and
MPRA Paper from University Library of Munich, Germany
This paper considers a model for exogenous coalition formation in e-marketplaces. Using the informational advantage e-retailer creates coalitions of customers based on geographical proximity. Most of the literature regards this process as endogenous: a coalition leader bundles eventual purchases together in order to obtain a better bargaining position. In contrast - and in response to what is being observed in business practice - we analyse a situation in which an existing e-retailer exogenously forms customers' coalitions. Results of this study are highly encouraging. Namely, we demonstrate that even under highly imperfect warehouse management schemes leading to contagion eects, suggested combined delivery service may oer signifficant efficiency gains as well as opportunities for Pareto-improvement.
Keywords: Coalition formation; e-commerce; multi-agent systems; consumer satisfaction; demand planning; warehouse management. (search for similar items in EconPapers)
JEL-codes: D12 C15 (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:15203
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