IDEAS home Printed from https://ideas.repec.org/a/taf/marpmg/v36y2009i5p385-396.html
   My bibliography  Save this article

Market efficiency within dry bulk markets in the short run: a multi-agent system dynamics Nash equilibrium

Author

Listed:
  • Steve Engelen
  • Wout Dullaert
  • Bert Vernimmen

Abstract

In this paper, we assess the Efficient Market Hypothesis (EMH) in relation to dry bulk shipping in the short run. The aim is to explain why freight rates in the different ship segments are highly correlated. By building a system dynamics model, which is well-suited to modelling complex and stochastic processes with limited data availability, we attempt to track the arbitrage process in which the different ship types (Handy, Panamax and Capesize) literally seek to transport each others’ cargoes (substitution) when this is beneficial. Also, within one ship segment, we govern the arbitrage opportunities arising from regional differences in freight rates. Although the EMH is ever more contested in the maritime literature, holistic and analytical proof is provided that efficiency is maintained through the intrinsic arbitrage free and evolutionary behaviour in the system towards the Nash equilibrium.

Suggested Citation

  • Steve Engelen & Wout Dullaert & Bert Vernimmen, 2009. "Market efficiency within dry bulk markets in the short run: a multi-agent system dynamics Nash equilibrium," Maritime Policy & Management, Taylor & Francis Journals, vol. 36(5), pages 385-396, October.
    • Handle: RePEc:taf:marpmg:v:36:y:2009:i:5:p:385-396
    DOI: 10.1080/03088830903187135
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/03088830903187135
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/03088830903187135?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Furkan Oztanriseven & Heather Nachtmann, 2020. "Modeling dynamic behavior of navigable inland waterways," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 22(2), pages 173-195, June.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:marpmg:v:36:y:2009:i:5:p:385-396. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/TMPM20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.