Analysis of different cost allocation methods in a collaborative transport setting
Faculty of Applied Economics
Antwerp :University of Antwerp, Faculty of Applied Economics, 2013
Research paper / University of Antwerp, Faculty of Applied Economics ; 2013:009
University of Antwerp
In collaborative transport, dividing the total cost of the coalition between its dierent partners is a key issue. However, as each coalition has its own set of preferences and has partners with dierent characteristics, a cost allocation method suitable in all situations does not exist. In this paper, a set of cost allocation methods, some academic, some used in practice, are evaluated in dierent situations. We investigate how well these methods behave when partners have dierent characteristics. E.g., when one partner ships a much larger volume than the others, it is very likely that this partner does not agree to allocate costs according to the volume of each partner. We show which cost allocation methods suce in which situations, showing that a right cost allocation is highly dependent on the characteristics of the coalition.