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Elephants or goldfish?: An empirical analysis of carrier reciprocity in dynamic freight markets

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  • Acocella, Angela
  • Caplice, Chris
  • Sheffi, Yossi

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, 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.

Suggested Citation

  • Acocella, Angela & Caplice, Chris & Sheffi, Yossi, 2020. "Elephants or goldfish?: An empirical analysis of carrier reciprocity in dynamic freight markets," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 142(C).
    • Handle: RePEc:eee:transe:v:142:y:2020:i:c:s1366554520307249
    DOI: 10.1016/j.tre.2020.102073
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    Cited by:

    1. Angela Acocella & Chris Caplice & Yossi Sheffi, 2022. "The end of 'set it and forget it' pricing? Opportunities for market-based freight contracts," Papers 2202.02367, arXiv.org.
    2. Dellbrügge, Marius & Brilka, Tim & Kreuz, Felix & Clausen, Uwe, 2022. "Auction design in strategic freight procurement," Chapters from the Proceedings of the Hamburg International Conference of Logistics (HICL), in: Kersten, Wolfgang & Jahn, Carlos & Blecker, Thorsten & Ringle, Christian M. (ed.), Changing Tides: The New Role of Resilience and Sustainability in Logistics and Supply Chain Management – Innovative Approaches for the Shift to a New , volume 33, pages 295-325, Hamburg University of Technology (TUHH), Institute of Business Logistics and General Management.

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