A game theory model for freight service provision security investments for high-value cargo

Anna Nagurney, Shivani Shukla, Ladimer S. Nagurney and Sara Saberi

Economics of Transportation, 2018, vol. 16, issue C, 21-28

Abstract: In this paper, we develop a game theory model in which freight service providers seek to maximize their expected utility by competing for business from shippers and also investing in security. The focus is on high-value cargo, which has been the target of attacks globally. Shippers reflect their preferences for freight service providers through the prices they are willing to pay which depend on quantities shipped and security levels invested in. The Nash Equilibrium is formulated as a variational inequality problem for which existence is guaranteed. Numerical examples illustrate the framework and give essential freight security investment policy related information.

Keywords: Security; Freight; Networks; High-value cargo; Game theory; Variational inequalities; Security policy (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S2212012217300667
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:ecotra:v:16:y:2018:i:c:p:21-28

DOI: 10.1016/j.ecotra.2018.09.002

Access Statistics for this article

Economics of Transportation is currently edited by Mogens Fosgerau and Erik Verhoef

More articles in Economics of Transportation from Elsevier
Bibliographic data for series maintained by Catherine Liu ().