A Game Theoretic Analysis of a Regional Approach toward the Sustainability of Kolkata-Agartala Transit Route

Subir Sen (), I Mukhopadhyay and S Gupta

MPRA Paper from University Library of Munich, Germany

Abstract: This paper attempts to explore the possibilities of a viable transport network in the long run which can respond to the demand for communication by people of Tripura as well as the demand of Tripura’s projected economy. Since, Tripura is constantly facing the problem of lack of a smooth transportation and naturally, it is an economic imperative for this landlocked state to seek benefits for itself through greater regional integration. Most of the cargo originates from Kolkata (Port) and terminates at Guwahati and distributed to various destinations of north eastern states. This paper examines the perspectives of such cargo movement from Kolkata to Agartala and the strategic options of the transiting countries, namely Bangladesh and Myanmar. The development of a new transit route through Myanmar, depriving Bangladesh of its former monopoly, has modified the situation profoundly. The thrust of the paper is an analysis of the strategies that Bangladesh and Myanmar may pursue in transiting cargo for Agartala in terms of a game theoretic structure. The long run sustainability of such transit route from Kolkata to Agartala depends on regional cooperation among these countries in a political emotional state of nature.

Keywords: Transit Fees; Game Theory; Monopoly; Bertrand Competition (search for similar items in EconPapers)
JEL-codes: C52 D43 R11 R48 (search for similar items in EconPapers)
Date: 2011-02-28
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