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

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  • Dong, Gang
  • Huang, Rongbing

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.

Suggested Citation

  • Dong, Gang & Huang, Rongbing, 2022. "Inter-port price competition in a multi-port gateway region," Research in Transportation Economics, Elsevier, vol. 94(C).
  • Handle: RePEc:eee:retrec:v:94:y:2022:i:c:s0739885922000014
    DOI: 10.1016/j.retrec.2022.101178
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