Designing Mechanisms for the Management of Carrier Alliances

@article{Houghtalen2011DesigningMF,
  title={Designing Mechanisms for the Management of Carrier Alliances},
  author={Lori Houghtalen and {\"O}zlem Ergun and Joel Sokol},
  journal={Transportation Science},
  year={2011},
  volume={45},
  pages={465-482}
}
When cargo carriers form an alliance, sharing network capacity in order to improve profitability, a key issue is how to provide incentive for carriers to make decisions that are optimal for the alliance as a whole. We propose a mechanism that allocates both alliance resources and profits by appropriately setting resource prices. Clearly, it is important to understand the impact of these prices on the behavior of an individual carrier. We analyze the performance of our mechanism using a modeling… CONTINUE READING

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Revenue Management in Resource Exchange

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