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The Price of Anarchy for Centralising or Decentralising Freight Transport Organisation Through Serious Gaming

Author

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  • Mariam Lafkihi

    (CGS i3 - Centre de Gestion Scientifique i3 - Mines Paris - PSL (École nationale supérieure des mines de Paris) - PSL - Université Paris Sciences et Lettres - I3 - Institut interdisciplinaire de l’innovation - CNRS - Centre National de la Recherche Scientifique)

  • Shenle Pan

    (CGS i3 - Centre de Gestion Scientifique i3 - Mines Paris - PSL (École nationale supérieure des mines de Paris) - PSL - Université Paris Sciences et Lettres - I3 - Institut interdisciplinaire de l’innovation - CNRS - Centre National de la Recherche Scientifique)

  • Eric Ballot

    (CGS i3 - Centre de Gestion Scientifique i3 - Mines Paris - PSL (École nationale supérieure des mines de Paris) - PSL - Université Paris Sciences et Lettres - I3 - Institut interdisciplinaire de l’innovation - CNRS - Centre National de la Recherche Scientifique)

Abstract

Centralisation and decentralisation are the two common organisations in freight transport. The first relies on a central authority who optimises and establishes transport plans for all carriers for global-interest, while the second lets carriers optimise their own transport plans for their self-interest. The outcome-efficiency and effectiveness-could be different. This paper aims to use the concept of Price of Anarchy (PoA) to compare the outcome of the two organisations. Due to the complexity of actual freight transport market, this paper adapts the gamification methodology to investigate the two organisations. A freight transport game was developed for simulation. The outcome of the two simulated organisations-centralisation or decentralisation-are then compared. The results show that the centralisation outperforms in terms of global efficiency and effectiveness; while decentralisation is better individual incentive. However, the PoA varies depending on information revealed. Copyright © 2019 IFAC

Suggested Citation

  • Mariam Lafkihi & Shenle Pan & Eric Ballot, 2019. "The Price of Anarchy for Centralising or Decentralising Freight Transport Organisation Through Serious Gaming," Post-Print hal-02078872, HAL.
    • Handle: RePEc:hal:journl:hal-02078872
    Note: View the original document on HAL open archive server: https://minesparis-psl.hal.science/hal-02078872v1
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    File URL: https://minesparis-psl.hal.science/hal-02078872v1/document
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    References listed on IDEAS

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    1. Ye, Yu-Sen & Ma, Zu-Jun & Dai, Ying, 2016. "The price of anarchy in competitive reverse supply chains with quality-dependent price-only contracts," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 89(C), pages 86-107.
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    Cited by:

    1. Kong, Xiang T.R. & Kang, Kai & Zhong, Ray Y. & Luo, Hao & Xu, Su Xiu, 2021. "Cyber physical system-enabled on-demand logistics trading," International Journal of Production Economics, Elsevier, vol. 233(C).
    2. Briand, Martin & Franklin, Rod & Lafkihi, Mariam, 2022. "A dynamic routing protocol with payments for the Physical Internet: A simulation with learning agents," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 166(C).

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    More about this item

    Keywords

    Organisation; Freight Transport; Centralisation or Decentralisation; Physical Internet; Price of Anarchy; Gamification;
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