Prof. Xuan Wang
Operations Management
The Hong Kong University of Science and Technology
Talk:
Posted Price versus Hybrid Mechanisms in Freight Transportation Marketplaces
Abstract:
We consider a freight platform that serves as an intermediary between shippers and carriers in a truckload transportation network. The platform’s objective is to design a policy that determines prices for shippers and payments to carriers, as well as how carriers are matched to loads to be transported, to maximize its long-run average profit. We propose a two-stage decision framework to model carriers' load choice behavior, where carriers choose a lane according to the multinomial logit (MNL) model based on the platform's posted price in the first stage and book a load in the second stage. We analyze two types of carrier-side mechanisms commonly used by freight platforms: a posted price mechanism and a hybrid mechanism where carriers can either book loads at posted price or submit their bids in an auction. The proposed mechanisms are constructed using a fluid approximation model to incorporate carrier interactions in the freight network. We show that the hybrid mechanism has higher profits than the posted price mechanism. We prove tight bounds between these mechanisms for varying market sizes. The findings are validated through a numerical simulation using industry data from the U.S. freight market.
Biography:
Prof. Xuan Wang is an Associate Professor in the Department of Information Systems, Business Statistics, and Operations Management (ISOM) at HKUST. She holds a PhD in Operations Management from New York University and a bachelor’s degree in Industrial Engineering from Tsinghua University. Her research focuses on supply chain management, operations flexibility design, revenue optimization, and online marketplace dynamics. Her work has been published in leading journals including Operations Research, Management Science, and Manufacturing & Service Operations Management. Since joining HKUST in 2016, she has received teaching excellence awards such as the Franklin Prize for both undergraduate and MBA courses. Prof. Wang actively contributes to the academic community through editorial roles, conference organization, and memberships in professional societies like INFORMS and the MSOM Society. She served as reviewer for Operations Research, Management Science, Manufacturing & Service Operations Management, Mathematics of Operations Research, Production and Operations Management, and Naval Research Logistics.
