Pub Date : 2022-01-01DOI: 10.5325/transportationj.61.1.0103
J. Bowen
Abstract:Using data on 12 months of operations, Amazon Air's network is contrasted to the domestic networks of FedEx Express and UPS Airlines. Amazon Air has a lower network density than the other two airlines, and its geography is more strongly related to Amazon's distribution centers. Like UPS and FedEx, Amazon has placed its main hub at a location in the central United States: first Wilmington, Ohio and more recently Cincinnati. The acceleration of online retail trade since the onset of the COVID-19 pandemic may encourage other digitally native or incumbent retail firms to develop their own air distribution networks. The criteria that distinguish Amazon Air's gateway airports are identified and then those criteria are applied to all public US airports to detect others that might be suitable for incorporation into a retail distribution air network.
{"title":"An Analysis of Amazon Air's Network in the United States","authors":"J. Bowen","doi":"10.5325/transportationj.61.1.0103","DOIUrl":"https://doi.org/10.5325/transportationj.61.1.0103","url":null,"abstract":"Abstract:Using data on 12 months of operations, Amazon Air's network is contrasted to the domestic networks of FedEx Express and UPS Airlines. Amazon Air has a lower network density than the other two airlines, and its geography is more strongly related to Amazon's distribution centers. Like UPS and FedEx, Amazon has placed its main hub at a location in the central United States: first Wilmington, Ohio and more recently Cincinnati. The acceleration of online retail trade since the onset of the COVID-19 pandemic may encourage other digitally native or incumbent retail firms to develop their own air distribution networks. The criteria that distinguish Amazon Air's gateway airports are identified and then those criteria are applied to all public US airports to detect others that might be suitable for incorporation into a retail distribution air network.","PeriodicalId":46529,"journal":{"name":"Transportation Journal","volume":"61 1","pages":"103 - 117"},"PeriodicalIF":2.3,"publicationDate":"2022-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48778818","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"工程技术","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-01-01DOI: 10.5325/transportationj.61.1.0001
Y. Jin, F. Adams, T. Morgan
Abstract:The modern retail environment is evolving rapidly under the confluence of technological advancement, environmental uncertainty, and general market dynamism. We summarize and synthesize the studies in this special-topic issue to illustrate how transportation capabilities enable members of the modern retail supply chain to adopt new business models, enhance lifestyles of community members, and contribute to corporate social responsibility. Further, we propose extensions to the studies published in this issue to further examine the future of transportation in retail. Notably, we call for future studies to explore how retail supply chain members may (1) develop new transportation and distribution capabilities by overcoming technical debt associated with specialized but abandoned assets; (2) leverage secondary markets to develop a closed-loop supply chain to maximize value and minimize waste; and (3) use enhanced transportation transparency and visibility to enhance customer service and sustainability efforts in retail supply chains.
{"title":"Transportation Makes Modern Retail \"Click\": Research Questions for the Future","authors":"Y. Jin, F. Adams, T. Morgan","doi":"10.5325/transportationj.61.1.0001","DOIUrl":"https://doi.org/10.5325/transportationj.61.1.0001","url":null,"abstract":"Abstract:The modern retail environment is evolving rapidly under the confluence of technological advancement, environmental uncertainty, and general market dynamism. We summarize and synthesize the studies in this special-topic issue to illustrate how transportation capabilities enable members of the modern retail supply chain to adopt new business models, enhance lifestyles of community members, and contribute to corporate social responsibility. Further, we propose extensions to the studies published in this issue to further examine the future of transportation in retail. Notably, we call for future studies to explore how retail supply chain members may (1) develop new transportation and distribution capabilities by overcoming technical debt associated with specialized but abandoned assets; (2) leverage secondary markets to develop a closed-loop supply chain to maximize value and minimize waste; and (3) use enhanced transportation transparency and visibility to enhance customer service and sustainability efforts in retail supply chains.","PeriodicalId":46529,"journal":{"name":"Transportation Journal","volume":"61 1","pages":"1 - 17"},"PeriodicalIF":2.3,"publicationDate":"2022-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46260222","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"工程技术","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-01-01DOI: 10.5325/transportationj.61.1.0018
Z. Rogers, D. Rogers, Haozhe Chen
Abstract:Due to shifting consumer expectations and the growth in e-commerce, companies are flush with returned product and excess inventory. Many firms have turned to secondary market channels to disposition excess goods and capture a greater percentage of their value. However, the secondary market has not gained sufficient attention from supply chain management researchers. To understand how firms are using these alternative channels of disposition, we collected and analyzed longitudinal survey data (collected in 2014 and 2017) from the United States and China. We find that US firms generally utilize secondary markets for different reasons than their Chinese counterparts and have found more success. However, while the results suggest that US secondary markets are more mature than their Chinese counterparts, the gap between the two countries appears to be narrowing.
{"title":"The Importance of Secondary Markets in the Changing Retail Landscape: A Longitudinal Study in the United States and China","authors":"Z. Rogers, D. Rogers, Haozhe Chen","doi":"10.5325/transportationj.61.1.0018","DOIUrl":"https://doi.org/10.5325/transportationj.61.1.0018","url":null,"abstract":"Abstract:Due to shifting consumer expectations and the growth in e-commerce, companies are flush with returned product and excess inventory. Many firms have turned to secondary market channels to disposition excess goods and capture a greater percentage of their value. However, the secondary market has not gained sufficient attention from supply chain management researchers. To understand how firms are using these alternative channels of disposition, we collected and analyzed longitudinal survey data (collected in 2014 and 2017) from the United States and China. We find that US firms generally utilize secondary markets for different reasons than their Chinese counterparts and have found more success. However, while the results suggest that US secondary markets are more mature than their Chinese counterparts, the gap between the two countries appears to be narrowing.","PeriodicalId":46529,"journal":{"name":"Transportation Journal","volume":"61 1","pages":"18 - 59"},"PeriodicalIF":2.3,"publicationDate":"2022-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43841432","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"工程技术","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-01-01DOI: 10.5325/transportationj.61.1.0060
A. Majidi, Pedram Farghadani-Chaharsooghi, S. M. Al-e-hashem
Abstract:The production routing problem seeks to simultaneously optimize production, routing, and inventory decisions for the plant and the suppliers. In this article an integrated multi-objective sustainable pricing-production-workforce-routing problem is presented for perishable products. Total profit, workforce planning, and vehicle fuel consumption are considered as objective functions due to the importance of operational performance, social, and environmental concerns. The application of the proposed approach is investigated using real case data from a dairy product supply chain. Furthermore, a new solution approach, called Fuzzy Domination Self-Learning Non-Dominated Sorting Algorithm (FDSL-NSGA-II), is developed to solve the problem. The results show that the Pareto solutions of FDSLNSGA-II outperform those of the classic NSGA-II. Moreover, the findings show that the proposed model can create a surpassing tradeoff between the various aspects of a supply chain, including production, distribution, and workforce planning. In addition, it concurrently optimizes the selling price and protects the environment from the negative impacts of greenhouse gas emissions (GHGs). A comprehensive analysis of the results reveals several managerial insights for decision makers in the logistics industry.
{"title":"Sustainable Pricing-Production-Workforce-Routing Problem for Perishable Products by Considering Demand Uncertainty; A Case Study from the Dairy Industry","authors":"A. Majidi, Pedram Farghadani-Chaharsooghi, S. M. Al-e-hashem","doi":"10.5325/transportationj.61.1.0060","DOIUrl":"https://doi.org/10.5325/transportationj.61.1.0060","url":null,"abstract":"Abstract:The production routing problem seeks to simultaneously optimize production, routing, and inventory decisions for the plant and the suppliers. In this article an integrated multi-objective sustainable pricing-production-workforce-routing problem is presented for perishable products. Total profit, workforce planning, and vehicle fuel consumption are considered as objective functions due to the importance of operational performance, social, and environmental concerns. The application of the proposed approach is investigated using real case data from a dairy product supply chain. Furthermore, a new solution approach, called Fuzzy Domination Self-Learning Non-Dominated Sorting Algorithm (FDSL-NSGA-II), is developed to solve the problem. The results show that the Pareto solutions of FDSLNSGA-II outperform those of the classic NSGA-II. Moreover, the findings show that the proposed model can create a surpassing tradeoff between the various aspects of a supply chain, including production, distribution, and workforce planning. In addition, it concurrently optimizes the selling price and protects the environment from the negative impacts of greenhouse gas emissions (GHGs). A comprehensive analysis of the results reveals several managerial insights for decision makers in the logistics industry.","PeriodicalId":46529,"journal":{"name":"Transportation Journal","volume":"61 1","pages":"102 - 60"},"PeriodicalIF":2.3,"publicationDate":"2022-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44258010","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"工程技术","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-01-01DOI: 10.5325/transportationj.61.1.0118
N. Masorgo
{"title":"The Future of Omni-Channel Retail: Predictions in the Age of Amazon by Lionel Binnie (review)","authors":"N. Masorgo","doi":"10.5325/transportationj.61.1.0118","DOIUrl":"https://doi.org/10.5325/transportationj.61.1.0118","url":null,"abstract":"","PeriodicalId":46529,"journal":{"name":"Transportation Journal","volume":"61 1","pages":"118 - 122"},"PeriodicalIF":2.3,"publicationDate":"2022-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46926338","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"工程技术","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-11-22DOI: 10.5325/transportationj.60.4.0339
Jinyu Jiang, Zhongzhen Yang
Abstract:In response to the increasingly frequent detour behavior of overloaded trucks attempting to avoid overload inspection and punishment, this article develops a bilevel programming model to optimize the routes of road administration vehicles by simulating the capture and anticapture interaction between administration vehicles and overloaded trucks. The upper-level model determines the optimal patrol routes of administration vehicles to maximize the number of overloaded trucks that can be captured. The lower-level model deduces the detour routes of overloaded trucks based on their circumvention behavior relative to administration vehicles. To solve the bilevel programming model, this article proposes a heuristic algorithm combining the ant colony algorithm and the labeling algorithm. To validate the proposed model and algorithm, this article uses actual rural highway data for Guiyang, China. The result proves the feasibility and superiority of the proposed programming model and algorithm. Compared to traditional overload management techniques, considering the detour behavior of overloaded trucks in optimizing the routing of road administration vehicles improves the effectiveness of overload management by up to 1.65 times.
{"title":"Routing Optimization for Road Administration Vehicles with Consideration of Overloaded Truck Detour Behavior on Rural Highways","authors":"Jinyu Jiang, Zhongzhen Yang","doi":"10.5325/transportationj.60.4.0339","DOIUrl":"https://doi.org/10.5325/transportationj.60.4.0339","url":null,"abstract":"Abstract:In response to the increasingly frequent detour behavior of overloaded trucks attempting to avoid overload inspection and punishment, this article develops a bilevel programming model to optimize the routes of road administration vehicles by simulating the capture and anticapture interaction between administration vehicles and overloaded trucks. The upper-level model determines the optimal patrol routes of administration vehicles to maximize the number of overloaded trucks that can be captured. The lower-level model deduces the detour routes of overloaded trucks based on their circumvention behavior relative to administration vehicles. To solve the bilevel programming model, this article proposes a heuristic algorithm combining the ant colony algorithm and the labeling algorithm. To validate the proposed model and algorithm, this article uses actual rural highway data for Guiyang, China. The result proves the feasibility and superiority of the proposed programming model and algorithm. Compared to traditional overload management techniques, considering the detour behavior of overloaded trucks in optimizing the routing of road administration vehicles improves the effectiveness of overload management by up to 1.65 times.","PeriodicalId":46529,"journal":{"name":"Transportation Journal","volume":"60 1","pages":"339 - 366"},"PeriodicalIF":2.3,"publicationDate":"2021-11-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46032425","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"工程技术","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-11-22DOI: 10.5325/transportationj.60.4.0406
Alena Khaslavskaya, Violeta Roso, Iván D. Sánchez-Díaz, Altuntas Vural Ceren
Abstract:The purpose of this study is to investigate which dry port services generate the greatest positive impact on stakeholders and their objectives. Stakeholders identified from the literature are the dry ports, the dry port’s municipality/region, the seaport, shippers, shipping lines, rail operators, and road operators. A method based on multi-actor multi-criteria analysis is applied to allow the evaluation of different scenarios considering the objectives and opinions of multiple stakeholders. The findings show that the basic services of the dry ports studied are crucial to establishing initial operations. Expanding the service portfolio by adding a wider range of customer-oriented value-added services generates extra economic and environmental benefits for stakeholders. The results expand the understanding on stakeholder benefits from the diversified range of dry port services, while the inclusion of multiple stakeholders in the analysis acknowledges the heterogeneity in stakeholder perceptions. Finally, this methodology enables the creation of an extensive set of criteria and indicators for dry port evaluations.
{"title":"Value-Added Services at Dry Ports: Balancing the Perspectives of Different Stakeholders","authors":"Alena Khaslavskaya, Violeta Roso, Iván D. Sánchez-Díaz, Altuntas Vural Ceren","doi":"10.5325/transportationj.60.4.0406","DOIUrl":"https://doi.org/10.5325/transportationj.60.4.0406","url":null,"abstract":"Abstract:The purpose of this study is to investigate which dry port services generate the greatest positive impact on stakeholders and their objectives. Stakeholders identified from the literature are the dry ports, the dry port’s municipality/region, the seaport, shippers, shipping lines, rail operators, and road operators. A method based on multi-actor multi-criteria analysis is applied to allow the evaluation of different scenarios considering the objectives and opinions of multiple stakeholders. The findings show that the basic services of the dry ports studied are crucial to establishing initial operations. Expanding the service portfolio by adding a wider range of customer-oriented value-added services generates extra economic and environmental benefits for stakeholders. The results expand the understanding on stakeholder benefits from the diversified range of dry port services, while the inclusion of multiple stakeholders in the analysis acknowledges the heterogeneity in stakeholder perceptions. Finally, this methodology enables the creation of an extensive set of criteria and indicators for dry port evaluations.","PeriodicalId":46529,"journal":{"name":"Transportation Journal","volume":"60 1","pages":"406 - 438"},"PeriodicalIF":2.3,"publicationDate":"2021-11-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46398671","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"工程技术","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-11-22DOI: 10.5325/transportationj.60.4.0367
J. R. Macdonald, T. Porterfield, Stanley E. Griffis
Abstract:Supply chain disruptions negatively impact the economy and individual organizations. However, as many companies recover from disruptions (COVID-19 being a recent example), less attention has been paid to how these events impact business-to-business (B2B) relationships characteristic of supply chains. Drawing on justice theory, we examine how the suppliers’ management of the recovery process affects behavioral reactions in the context of supply chain relationships. This study empirically examines the role that partners’ recovery process, honesty, effort, availability, and outcome fairness play in influencing satisfaction, future business volumes, and word-of-mouth. Using ordinary least squares (OLS) regression to test survey data, results indicate that how recovery processes are managed positively affects satisfaction, reduces the likelihood of future business loss, and affects the propensity to communicate negatively about a relationship partner. Unexpectedly, outcome fairness (distributive justice) has a significant positive impact on negative word-of-mouth, indicating that increased perceptions of distributive justice actually increase negative behavioral outcomes in certain settings. We conduct exploratory post hoc serial mediation analysis to further examine this finding and uncover a potential extension to the boundaries of a justice lens. These post hoc results, which generally confirm the OLS results, drive opportunity for better understanding of complaining behavior and navigating the tricky environment associated with managing B2B relationships in a post-disruption environment.
{"title":"Managing Supply Chain Disruption Recovery: The Role of Organizational Justice","authors":"J. R. Macdonald, T. Porterfield, Stanley E. Griffis","doi":"10.5325/transportationj.60.4.0367","DOIUrl":"https://doi.org/10.5325/transportationj.60.4.0367","url":null,"abstract":"Abstract:Supply chain disruptions negatively impact the economy and individual organizations. However, as many companies recover from disruptions (COVID-19 being a recent example), less attention has been paid to how these events impact business-to-business (B2B) relationships characteristic of supply chains. Drawing on justice theory, we examine how the suppliers’ management of the recovery process affects behavioral reactions in the context of supply chain relationships. This study empirically examines the role that partners’ recovery process, honesty, effort, availability, and outcome fairness play in influencing satisfaction, future business volumes, and word-of-mouth. Using ordinary least squares (OLS) regression to test survey data, results indicate that how recovery processes are managed positively affects satisfaction, reduces the likelihood of future business loss, and affects the propensity to communicate negatively about a relationship partner. Unexpectedly, outcome fairness (distributive justice) has a significant positive impact on negative word-of-mouth, indicating that increased perceptions of distributive justice actually increase negative behavioral outcomes in certain settings. We conduct exploratory post hoc serial mediation analysis to further examine this finding and uncover a potential extension to the boundaries of a justice lens. These post hoc results, which generally confirm the OLS results, drive opportunity for better understanding of complaining behavior and navigating the tricky environment associated with managing B2B relationships in a post-disruption environment.","PeriodicalId":46529,"journal":{"name":"Transportation Journal","volume":"60 1","pages":"367 - 405"},"PeriodicalIF":2.3,"publicationDate":"2021-11-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46545169","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"工程技术","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-08-03DOI: 10.5325/TRANSPORTATIONJ.60.2.0141
Murilo Branco, Rafael Teixeira, Saif U. Mir, D. P. Lacerda
Abstract:In this multimethod research, we build on the customer portfolio literature to theorize a two-dimensional matrix between the strategic importance of a port operator's customers and the customers' perceptions of the port operator's supply chain integration (SCI). The matrix highlights two mismatches: (1) important customers do not perceive a high degree of port operator SCI; and (2) low-importance customers perceive a high degree of port operator SCI. In the former, the port operator's investments are wasted, while in the latter the port operator reaps benefits from minimal investments. In our first study, we classify 1,441 customers of a Brazilian port operator into three levels of strategic importance: high, medium, and low. A survey instrument sent to these customers measured the perceived port operators' SCI by 210 customers, and the analysis revealed a mismatch for 76 percent of the companies. The second study examines the reasons for the mismatch. Semi-structured interviews highlighted that the perceived unfairness of the port operator's operational decision making and negative experiences with other supply chain members negatively affected the SCI perceptions of customers. We also found a spill-over effect: low-importance customers perceived a high level of SCI due to the port operator's operational investments in its important customers.
{"title":"Barriers to the Development of Port Operator Supply Chain Integration: An Evaluation in a Developing Country","authors":"Murilo Branco, Rafael Teixeira, Saif U. Mir, D. P. Lacerda","doi":"10.5325/TRANSPORTATIONJ.60.2.0141","DOIUrl":"https://doi.org/10.5325/TRANSPORTATIONJ.60.2.0141","url":null,"abstract":"Abstract:In this multimethod research, we build on the customer portfolio literature to theorize a two-dimensional matrix between the strategic importance of a port operator's customers and the customers' perceptions of the port operator's supply chain integration (SCI). The matrix highlights two mismatches: (1) important customers do not perceive a high degree of port operator SCI; and (2) low-importance customers perceive a high degree of port operator SCI. In the former, the port operator's investments are wasted, while in the latter the port operator reaps benefits from minimal investments. In our first study, we classify 1,441 customers of a Brazilian port operator into three levels of strategic importance: high, medium, and low. A survey instrument sent to these customers measured the perceived port operators' SCI by 210 customers, and the analysis revealed a mismatch for 76 percent of the companies. The second study examines the reasons for the mismatch. Semi-structured interviews highlighted that the perceived unfairness of the port operator's operational decision making and negative experiences with other supply chain members negatively affected the SCI perceptions of customers. We also found a spill-over effect: low-importance customers perceived a high level of SCI due to the port operator's operational investments in its important customers.","PeriodicalId":46529,"journal":{"name":"Transportation Journal","volume":"60 1","pages":"141 - 170"},"PeriodicalIF":2.3,"publicationDate":"2021-08-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"70919165","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"工程技术","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-08-03DOI: 10.5325/transportationj.60.3.0258
Su, L Dresner
Abstract:This study examines the relationship between multimarket contact (MMC) and competitive supply decisions by firms. Using US air-carrier traffic data, we find that a carrier's MMC is negatively associated with the available seats in a market. This finding provides support for the "mutual forbearance hypothesis" and suggests that MMC facilitates tacit collusion in the supply of capacity. We also find that tacit collusion may be more difficult to achieve on longer-distance routes, where carriers face difficulties monitoring the capacities of rivals that compete through indirect routings. On the longer-distance routes, the negative relationship between MMC and capacity thus diminishes. Finally, we show that the negative impact of MMC on capacity has increased in strength over the past 10 years. Since the impact of MMC on reducing capacity may lead to higher airfares, our findings contribute to important antitrust considerations.
{"title":"Multimarket Contact and Capacity: Evidence from the US Airline Industry","authors":"Su, L Dresner","doi":"10.5325/transportationj.60.3.0258","DOIUrl":"https://doi.org/10.5325/transportationj.60.3.0258","url":null,"abstract":"Abstract:This study examines the relationship between multimarket contact (MMC) and competitive supply decisions by firms. Using US air-carrier traffic data, we find that a carrier's MMC is negatively associated with the available seats in a market. This finding provides support for the \"mutual forbearance hypothesis\" and suggests that MMC facilitates tacit collusion in the supply of capacity. We also find that tacit collusion may be more difficult to achieve on longer-distance routes, where carriers face difficulties monitoring the capacities of rivals that compete through indirect routings. On the longer-distance routes, the negative relationship between MMC and capacity thus diminishes. Finally, we show that the negative impact of MMC on capacity has increased in strength over the past 10 years. Since the impact of MMC on reducing capacity may lead to higher airfares, our findings contribute to important antitrust considerations.","PeriodicalId":46529,"journal":{"name":"Transportation Journal","volume":"60 1","pages":"258 - 306"},"PeriodicalIF":2.3,"publicationDate":"2021-08-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42904571","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"工程技术","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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