Elephants or Goldfish?: An Empirical Analysis of Carrier Reciprocity in Dynamic Freight Markets
Name
Acocella_Caplice_Sheffi_Carrier_Reciprocity_SCALE_Working_Paper_Submission.pdf
Size
6.64 MB
Format
Adobe PDF
Checksum (MD5)
f7db27b9a4514cdfc2a72a0a520fdcb9
Author(s)
Acocella, Angela J. (Angela Josephine)
Caplice, Chris
Sheffi, Yossi
Date Issued
January 23, 2020
Publisher
MIT Center for Transportation & Logistics
Series/Report no.
MIT Global Supply Chain and Logistics Excellence Network Working Paper Series; 2020-mitscale-ctl-01
Abstract
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 or tendering consistency 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.
Description
A later version of this working paper has been published in a peer-reviewed journal and can be access here: https://doi.org/10.1016/j.tre.2020.102073
MIT Department
Massachusetts Institute of Technology. Center for Transportation & Logistics
Persistent DSpace Link
DOI of Published Version
https://doi.org/10.1016/j.tre.2020.102073
