Gain sharing in horizontal logistic collaboration. A case study in the fresh fruit and vegetables sector

This paper applies several cost allocation methods to a real life case study of fresh produce traders, jointly organising their transportation from the auction to a joint transport platform. The allocation may differ depending on whether the costs are divided on a daily basis or aggregated over a longer period. Moreover, the choice of allocation method determines the specific incentive — to grow, to be flexible towards delivery terms — that is given towards the collaborating parties. In conclusion, although the literature on game theory offers some support, the coalition has to determine what it perceives as a ‘fair’ cost allocation.