Philippe Chevalier

Philippe Chevalier is Professor at the Institut d’Administration et de gestion, Université Catholique de Louvain and currently is the President of the Center for Operations Research and Econometrics, CORE, at the same university.

He holds a Ph.D. in Operations Research from the Massachessuetts Institute of Technology in 2002 and a degree of Ingénieur civil en mathématiques appliquées from the Université Catholique de Louvain in 1988. Chevalier interest are in the use of Optimization models under uncertainty in Operations management and Supply Chain management.

Economic models for horizontal collaboration

Horizontal collaboration can be seen as the sharing of resources between firms either competing or at least active on similar markets. Such collaboration initiatives are driven by the participants desire to obtain economies of scale. Given that this involves at least two independent decision makers, the traditional profit maximization approach to determine the best outcome is not adequate here. In this tutorial we will start by showing how economies of scale arise naturally as soon as some variability is present (either in demand or operations) with different models of the firm. We then show how different objectives of the firms can be modeled in the framework of horizontal collaboration taking notions such as fairness and risk into account.