Co-opetition effect of promised-delivery-time sensitive demand on air cargo carriers' big data investment and demand signal sharing decisions. (March 2019)

• Record Type: Journal Article
• Authors: Niu, Baozhuang; Dai, Zhipeng; Zhuo, Xiaopo
• Is Part Of: Transportation research. Volume 123(2019)
• Page Start: 29
• Page End: 44
• Publication Date: 2019-03
• Subjects: Air cargo operations -- Big data investment -- Demand signal sharing -- Promised delivery time -- Co-opetition; Logistics -- Periodicals; Transportation -- Periodicals; 388.011
• DOI: 10.1016/j.tre.2019.01.011
• Languages: English
• ISSNs: 1366-5545

Abstract

Highlights: Promised delivery time (PDT) sensitive demand is considered in air cargo operational decisions. Incentives of carriers' big data investment and demand signal sharing are explored. A carrier does not prefer other carriers' big data investment under tense PDT competition. A carrier may be willing to share its demand signal only when under PDT competition. Abstract: We study two competing air cargo carriers' incentives of cooperation with promised-delivery-time (PDT) sensitive demand, where Carrier 1 may invest in big data and share demand signal with Carrier 2. When the carriers focus on demand competition, Carrier 1's big data investment may benefit itself and the rival, while Carrier 1 never shares its updated demand signal. When the carriers focus on PDT competition, Carrier 2 does not prefer Carrier 1's big data investment when the PDT competition is fierce. Interestingly, Carrier 1 may be willing to share its updated demand signal and a "win-win" situation occurs.