Comparison of Centralization and Decentralization of Physical Internet Through Gamification
Centralization and decentralization are the two common organizations in freight transport. The first relies on a central authority who optimizes and establishes transport plans for all carriers for global- interest, while the second, presented by the physical internet in this paper, lets carriers optimize their own transport plans for their self-interest. The outcome - efficiency and effectiveness - could be different. This paper aims to use the concept of Price of Anarchy (PoA) to compare the outcome of the two organizations. Due to the complexity of actual freight transport market, this paper adapts the gamification methodology to investigate the two organizations. A freight transport game was developed for simulation. The outcome of the two simulated are then compared. The results show that the centralization outperforms in terms of global efficiency and effectiveness; while decentralization is better individual incentive. However, the PoA varies depending on information revealed.