Revenue Sharing Between Production, Logistics and Traffic: An Experimental Analysis of the Actors in Distribution Logistics

TLDR: In this article, the influence of fixed revenue sharing schemes on the behavior of the contract partners regarding the willingness to share information was investigated in a controlled laboratory experiments with students, and the results of the experiment showed a significant change in the participant's behaviour and indicate a higher willingness toshare information under revenue-sharing contracts.

Abstract: The ongoing trend to outsource logistics services increases the importance of logistic service provider (LSP) as the intermediary between production and traffic. Distribution logistics with the supply chain has a key role in fulfilling customers’ demand in time and good quality. To perform their services efficiently and effectively, the LSPs need relationship specific information. Since information is valuable, the customer avoids sharing those with the LSP. To incentive information sharing revenue-sharing contracts can be an instrument to align the interests of the partners. The chapter has the aim to research the influence of fixed revenue-sharing schemes on the behaviour of the contract partners regarding the willingness to share information. The applied method is controlled laboratory experiments with students. The results of the experiment show a significant change in the participant’s behaviour and indicate a higher willingness to share information under revenue-sharing contracts.