Game model for a new inspection regime of port state control under different reward and punishment conditions

Yi Xiao, Grace Wang, Ying-En Ge, Qinyi Xu and Kevin X. Li

Transportation Research Part E: Logistics and Transportation Review, 2021, vol. 156, issue C

Abstract: Port state control is regarded as the “last safety net” for maintaining maritime safety and environmental pollution prevention standards for foreign ships calling at or anchoring off international ports. Owing to limited resources, port states select and inspect ships that are more likely to be substandard under their inspection regimes and then record and publish the performance of shipowners and flag states. To encourage ships to comply with standards during subsequent inspections and improve new inspection regimes, we develop a game model analysing the strategies of port states, flag states, and shipowners. We then confirm the Nash equilibrium of the pure and mixed strategies. Subsequently, we investigate the influence of different reward and punishment conditions on flag states and shipowners and generate the following three results: first, differentiating flag state performance is crucial for port states to provide appropriate punishments or rewards to improve ship safety; second, reputation rewards have stronger impacts than reputation punishments for flag states; and third, reputation rewards or punishments from port states have little influence on shipowners’ strategies, since shipowners are much more concerned about their profits.

Keywords: Port state control; New inspection regime; Non-cooperative game model; Flag state control; Maritime safety (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1366554521002854
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:transe:v:156:y:2021:i:c:s1366554521002854

Ordering information: This journal article can be ordered from
http://www.elsevier.com/wps/find/journaldescription.cws_home/600244/bibliographic
http://www.elsevier. ... 600244/bibliographic

DOI: 10.1016/j.tre.2021.102526

Access Statistics for this article

Transportation Research Part E: Logistics and Transportation Review is currently edited by W. Talley

More articles in Transportation Research Part E: Logistics and Transportation Review from Elsevier
Bibliographic data for series maintained by Catherine Liu ().