A Stackelberg-game approach to support the design of logistic terminals

Abstract

This paper deals with the design of logistic terminals taking Sicily, in the South of Italy, as a case study. It focuses on consolidation terminals for truckers and addresses the problem of optimising location pattern and public share in investments. This problem is solved through a Stackelberg game between the designer and the collective of road carriers. So a bilevel approach combines a system-optimum problem, at the upper level, with the carrier equilibrium problem, at the lower level. The choice behaviour of the lower-level player is simulated by a random utility model. The output of the game suggests that private companies and society should share the investments and the public contribution should be high; furthermore, transhipment and consolidation services should be concentrated at few terminals to exploit fully economies of scale at the expense of the average travel time to reach the logistic platforms.