Markets of logistics services: the role of actors’ behavior to enhance performance

In real markets of logistics services, actors make independent decisions to pursue their own objectives, neglecting the need for maximizing performance of the market as a whole. The aim of this chapter is to assess the inefficiency of such logistics markets and define policies to improve system-wide performance, taking into account each actor’s behavior. A simulation model of a logistics marketplace is thus defined, wherein the transportation needs of a number of shippers have to be matched with the capacities of several carriers. The model is used to assess the players’ behavior and system performance in a decentralized logistics market. The analysis shows the extent to which certain features of the market affect inefficiency, stressing the room for improvement. Based on simulation results, several recommendations are given, aimed at influencing the actors’ autonomous decision making. We discuss how the recommendations’ efficacy is impacted by behavioral issues.