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Co-opetition effect of promised-delivery-time sensitive demand on air cargo carriers’ big data investment and demand signal sharing decisions

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  • Niu, Baozhuang
  • Dai, Zhipeng
  • Zhuo, Xiaopo

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.

Suggested Citation

  • Niu, Baozhuang & Dai, Zhipeng & Zhuo, Xiaopo, 2019. "Co-opetition effect of promised-delivery-time sensitive demand on air cargo carriers’ big data investment and demand signal sharing decisions," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 123(C), pages 29-44.
    • Handle: RePEc:eee:transe:v:123:y:2019:i:c:p:29-44
    DOI: 10.1016/j.tre.2019.01.011
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