Inter-port price competition in a multi-port gateway region

Gang Dong and Rongbing Huang

Research in Transportation Economics, 2022, vol. 94, issue C

Abstract: The purpose of this paper is to study the inter-port pricing strategy in a Multi-Port Gateway Region (MPGR) under the background of deregulating port competitive service charges. We apply a two-stage game to explore the pricing strategies adopted by the container ports in an MPGR. The resulting price matching strategy is the unique subgame perfect Nash Equilibrium of the two-stage game even though the container ports in an MPGR have different variable costs. A numerical simulation is performed on Ningbo-Zhoushan and Shanghai Ports in Yangtze River Delta Region to demonstrate the results.

Keywords: Container ports; Deregulation; Inter-port competition; Multi-port gateway region; Price matching (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (2)

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DOI: 10.1016/j.retrec.2022.101178

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