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Port privatization in an international oligopoly

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  • Matsushima, Noriaki
  • Takauchi, Kazuhiro

Abstract

We investigate the effects of port privatization on port usage fees, firm profits, and welfare. Our model consists of an international duopoly with two ports and two markets. When the unit transport cost is high, port privatization reduces port usage fees, although neither government has an incentive to privatize its port. The equilibrium governmental decisions are inconsistent with the desirable outcome if the unit transport cost is not high enough. The government of the smaller country, in terms of market size, is more likely to privatize its port, and the government of the larger country is more likely to nationalize its port to protect its domestic market.

Suggested Citation

  • Matsushima, Noriaki & Takauchi, Kazuhiro, 2014. "Port privatization in an international oligopoly," Transportation Research Part B: Methodological, Elsevier, vol. 67(C), pages 382-397.
  • Handle: RePEc:eee:transb:v:67:y:2014:i:c:p:382-397
    DOI: 10.1016/j.trb.2014.04.010
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    Citations

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    Cited by:

    1. Takauchi, Kazuhiro, 2015. "Endogenous transport price and international R&D rivalry," Economic Modelling, Elsevier, vol. 46(C), pages 36-43.
    2. Hidalgo-Gallego, Soraya & Núñez-Sánchez, Ramón & Coto-Millán, Pablo, 2017. "Spatial non-price competition in port infrastructure services," MPRA Paper 80417, University Library of Munich, Germany.
    3. Czerny, Achim & Höffler, Felix & Mun, Se-il, 2014. "Hub port competition and welfare effects of strategic privatization," Economics of Transportation, Elsevier, vol. 3(3), pages 211-220.
    4. Noruzoliaee, Mohamadhossein & Zou, Bo & Zhang, Anming, 2015. "Airport partial and full privatization in a multi-airport region: Focus on pricing and capacity," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 77(C), pages 45-60.
    5. repec:pal:marecl:v:20:y:2018:i:2:d:10.1057_s41278-016-0004-1 is not listed on IDEAS
    6. Takauchi, Kazuhiro, 2015. "Strategic export policy, monopoly carrier, and product differentiation," MPRA Paper 66003, University Library of Munich, Germany.
    7. repec:eee:transe:v:114:y:2018:i:c:p:40-65 is not listed on IDEAS
    8. Takauchi, Kazuhiro, 2015. "Transport efficiency, downstream R&D, and spillovers," MPRA Paper 68479, University Library of Munich, Germany.
    9. Xu, Lili & Lee, Sang-Ho & Wang, Leonard F.S., 2016. "Free trade agreements and privatization policy with an excess burden of taxation," Japan and the World Economy, Elsevier, vol. 37, pages 55-64.
    10. Takauchi, Kazuhiro, 2016. "Profit-reducing fixed-price contract: The role of the transport sector," MPRA Paper 71413, University Library of Munich, Germany.
    11. repec:eee:transb:v:104:y:2017:i:c:p:543-567 is not listed on IDEAS
    12. Kazuhiro Takauchi & Tomomichi Mizuno, 2017. "Solving a hold-up problem may harm all firms: downstream R&D and transport-price contracts," Discussion Papers 1707, Graduate School of Economics, Kobe University.
    13. repec:eee:transb:v:110:y:2018:i:c:p:137-159 is not listed on IDEAS

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