Transport contract optimization under information asymmetry: an example

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

Econometrics from University Library of Munich, Germany

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)
Pages: 30 pages
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.
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:wpa:wuwpem:0512005

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