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Exogenous coalition formation in the e-marketplace based on geographical proximity

Author

Listed:
  • McBurney, Peter
  • Michalak, Tomasz
  • Tyrowicz, Joanna
  • Wooldridge, Michael

Abstract

This paper considers a model for exogenous coalition formation in e-marketplaces. Using the informational advantage e-retailer creates coalitions of customers based on geographical proximity. Most of the literature regards this process as endogenous: a coalition leader bundles eventual purchases together in order to obtain a better bargaining position. In contrast - and in response to what is being observed in business practice - we analyse a situation in which an existing e-retailer exogenously forms customers' coalitions. Results of this study are highly encouraging. Namely, we demonstrate that even under highly imperfect warehouse management schemes leading to contagion eects, suggested combined delivery service may oer signifficant efficiency gains as well as opportunities for Pareto-improvement.

Suggested Citation

  • McBurney, Peter & Michalak, Tomasz & Tyrowicz, Joanna & Wooldridge, Michael, 2008. "Exogenous coalition formation in the e-marketplace based on geographical proximity," MPRA Paper 15203, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:15203
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    File URL: https://mpra.ub.uni-muenchen.de/15203/1/MPRA_paper_15203.pdf
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    Citations

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    Cited by:

    1. Baozhuang Niu & Jingmai Wang & Carman K. M. Lee & Lei Chen, 2019. "“Product + logistics” bundling sale and co-delivery in cross-border e-commerce," Electronic Commerce Research, Springer, vol. 19(4), pages 915-941, December.

    More about this item

    Keywords

    Coalition formation; e-commerce; multi-agent systems; consumer satisfaction; demand planning; warehouse management.;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • C15 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Statistical Simulation Methods: General

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