Strategic investments in accessibility under port competition and inter-regional coordination

Yulai Wan, Leonardo J. Basso and Anming Zhang

Transportation Research Part B: Methodological, 2016, vol. 93, issue PA, 102-125

Abstract: This paper analyzes the incentives for and welfare implications of collaboration among local governments in landside port accessibility investment. In particular, we consider two seaports with their respective captive markets and a common inland market for which the ports compete. The ports and the inland belong to three independent regional governments, each making investment decisions on accessibility for its own region. We find that there is a conflict of interest between the port governments and inland government in terms of their jointly making accessibility investment decisions, and that each region's preference over various coalitions is highly affected by ownership type of the competing ports. For public ports, the inland may compensate the port regions to achieve the grand coalition that maximizes total welfare but requires a sizable investment in the port regions. For private ports, however, the port regions benefit from coordinating with the inland and hence may be able to compensate the inland to form the grand coalition.

Keywords: Seaport competition; Inland accessibility; Strategic investment; Inter-regional coordination; Coalition stability (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (24)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0191261516300650
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:transb:v:93:y:2016:i:pa:p:102-125

Ordering information: This journal article can be ordered from
http://www.elsevier.com/wps/find/supportfaq.cws_home/regional
https://shop.elsevie ... _01_ooc_1&version=01

DOI: 10.1016/j.trb.2016.07.011

Access Statistics for this article

Transportation Research Part B: Methodological is currently edited by Fred Mannering

More articles in Transportation Research Part B: Methodological from Elsevier
Bibliographic data for series maintained by Catherine Liu ().