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.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
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
Date of revision:
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, 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)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- 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.
- 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," Open Access publications from Katholieke Universiteit Leuven urn:hdl:123456789/367099, Katholieke Universiteit Leuven.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joeri Nys).
If references are entirely missing, you can add them using this form.