Port activities, hinterland congestion, and optimal government policies: The role of vertical integration in logistic operations
AbstractWe study the implications of vertical integration in logistics and transport operations for welfare-optimal port access charges and hinterland congestion tolls. We show that, first, vertical integration of terminal operators and transport firms does not affect the optimal congestion toll rule for the hinterland, but it does imply higher optimal port access charges. Second, the government not only has an incentive to promote competition between downstream firms, it may also be beneficial to approve of vertical mergers in the logistic chain. Third, the government’s failure to respond to changes in industry market structure may have large welfare effects. Fourth, both under separation and integration, optimal port fees may imply subsidies if downstream firms enjoy a high degree of market power.
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Bibliographic InfoPaper provided by University of Antwerp, Faculty of Applied Economics in its series Working Papers with number 2010012.
Length: 44 pages
Date of creation: Jun 2010
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Web page: https://www.uantwerp.be/en/faculties/applied-economic-sciences/
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Other versions of this item:
- Bruno De Borger & Denis De Bruyne, 2011. "Port Activities, Hinterland Congestion, and Optimal Government Policies The Role of Vertical Integration in Logistic Operations," Journal of Transport Economics and Policy, London School of Economics and University of Bath, London School of Economics and University of Bath, vol. 45(2), pages 247-275, May.
- NEP-ALL-2010-07-24 (All new papers)
- NEP-COM-2010-07-24 (Industrial Competition)
- NEP-REG-2010-07-24 (Regulation)
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- Verhoef, Erik & Nijkamp, Peter & Rietveld, Piet, 1996. "Second-Best Congestion Pricing: The Case of an Untolled Alternative," Journal of Urban Economics, Elsevier, vol. 40(3), pages 279-302, November.
- Fan, Lei & Wilson, William W. & Dahl, Bruce, 2012. "Congestion, port expansion and spatial competition for US container imports," Transportation Research Part E: Logistics and Transportation Review, Elsevier, Elsevier, vol. 48(6), pages 1121-1136.
- DE BORGER, Bruno & PROOST, Stef, 2012.
"Transport policy competition between governments: A selective survey of the literature,"
2012014, University of Antwerp, Faculty of Applied Economics.
- De Borger, Bruno & Proost, Stef, 2012. "Transport policy competition between governments: A selective survey of the literature," Economics of Transportation, Elsevier, Elsevier, vol. 1(1), pages 35-48.
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