Elephants or goldfish?: An empirical analysis of carrier reciprocity in dynamic freight markets
Name
Acocella_Caplice_Sheffi_Carrier_Reciprocity_SCALE_Working_Paper_Submission.pdf
Description
Submitted version
Size
6.64 MB
Format
Adobe PDF
Checksum (MD5)
f7db27b9a4514cdfc2a72a0a520fdcb9
Author(s)
Acocella, Angela
Caplice, Chris
Sheffi, Yossi
Date Issued
September 2020
Journal
Transportation Research Part E: Logistics and Transportation Review
Publisher
Elsevier BV
Citation
Angela Acocella, Chris Caplice, Yossi Sheffi, Elephants or goldfish?: An empirical analysis of carrier reciprocity in dynamic freight markets, Transportation Research Part E: Logistics and Transportation Review, Volume 142, 2020
Version
Original manuscript
Abstract
© 2020 Elsevier Ltd Dynamic macroeconomic conditions and non-binding truckload freight contracts enable both shippers and carriers to behave opportunistically. We present an empirical analysis of carrier reciprocity in the US truckload transportation sector to demonstrate whether consistent performance and fair pricing by shippers when markets are in their favor result in maintained primary carrier tender acceptance when markets turn. The results suggest carriers have short memories: they do not remember shippers’ previous period pricing, tendering behavior, or performance when making freight acceptance decisions. However, carriers appear to be myopic and respond to shippers’ current market period behaviors, ostensibly without regard to shippers’ previous behaviors.
MIT Department
Massachusetts Institute of Technology. Center for Transportation & Logistics
Terms of Use
Creative Commons Attribution-NonCommercial-NoDerivs License
Persistent DSpace Link
DOI of Published Version
https://doi.org/10.1016/J.TRE.2020.102073
