Publication Type
Journal Article
Version
acceptedVersion
Publication Date
9-2025
Abstract
Many logistics platforms enable collaboration between agents to reduce costs, but determining fair pricing remains challenging when agents have pre-existing partnerships. This paper introduces a cooperative game theory framework to model platform-mediated collaboration, modeling the platform as an additional player. We present a novel characteristic function that distinguishes between partial collaborations (existing relationships) and full collaborations (platform-enabled). Using Shapley value, we derive fair cost allocations and platform charges that reflect each participant's contribution. We address stability concerns through an optimization model that minimizes platform subsidies while preventing profitable deviations. The framework is demonstrated through an application in freight forwarding for Less-than-Container Load (LCL) consolidation, showing how it balances participant incentives with platform revenue across varying collaboration structures and network sizes.
Keywords
Collaborative Logistics, Cooperative Game Theory, Freight Forwarding, LCL Consolidation
Discipline
Artificial Intelligence and Robotics
Research Areas
Intelligent Systems and Optimization
Areas of Excellence
Sustainability
Publication
Proceedings of the Sixteenth International Conference on Computational Logistics, Delft and Rotterdam, Netherlands, 2025 September 8-10
First Page
1
Last Page
15
Embargo Period
12-3-2025
Citation
TAN, Pang Jin and CHENG, Shih-Fen.
Stable and fair cost allocation in platform-enabled LCL consolidation. (2025). Proceedings of the Sixteenth International Conference on Computational Logistics, Delft and Rotterdam, Netherlands, 2025 September 8-10. 1-15.
Available at: https://ink.library.smu.edu.sg/sis_research/10538
Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Additional URL
https://easychair.org/smart-program/ICCLEuroMar2025/