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Open AccessArticle

The Sharing of Benefits from a Logistics Alliance Based on a Hub-Spoke Network: A Cooperative Game Theoretic Approach

1
Korea University Business School, Korea University, Seoul, Korea
2
School of Industrial Management Engineering, Korea University, Seoul, Korea
*
Authors to whom correspondence should be addressed.
Sustainability 2018, 10(6), 1855; https://doi.org/10.3390/su10061855
Received: 26 April 2018 / Revised: 27 May 2018 / Accepted: 28 May 2018 / Published: 3 June 2018
(This article belongs to the Special Issue Alliances and Network Organizations for Sustainable Development)
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Abstract

This study investigates a strategic alliance as a horizontal cooperation in the logistics and transportation industries by considering various sharing rules with a cooperative game approach. Through forging a strategic alliance, carriers gain extra benefits from resource sharing and high efficiency resource utilization. In particular, our research focuses on the cost savings from using larger vehicles utilizing collective market demand and regarding them as benefits of cooperation. The model conceptualizes the characteristic function of cost savings by coalitions that take into account the hub-spoke network which is common in transportation services. To share the improved profits fairly between members, we use different allocation schemes: the Shapley value, the core center, the τ -value, and the nucleolus. By analyzing those cooperative game theoretic solutions employing an alliance composed of three carriers, we investigate whether satisfaction in this specific coalition provides an incentive for carriers to join such a coalition. Our results from the analysis, with respect to fair allocation schemes, provide a practical and academic foundation for further research. View Full-Text
Keywords: strategic alliance; cost allocation; cooperative game theory; logistics alliance strategic alliance; cost allocation; cooperative game theory; logistics alliance
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Yea, M.; Chung, S.; Cheong, T.; Kim, D. The Sharing of Benefits from a Logistics Alliance Based on a Hub-Spoke Network: A Cooperative Game Theoretic Approach. Sustainability 2018, 10, 1855.

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