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Tacit collusion between two terminals of a port

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  • Dong, Gang
  • Huang, Rongbing
  • Ng, Peggy

Abstract

With the recent deregulation of container service rates and the establishment of more joint venture terminals in China, the separation of ownership and operation of container terminals will make price competition fierce in one port area. In this study we present an analysis of the price competition between two container terminals using a two-stage non-cooperative game theoretical model. Our main finding is that price-matching strategies facilitate tacit collusion between container terminals. Numerical simulation is applied to the container terminals at the Yangshan Deepwater Port in Shanghai, China.

Suggested Citation

  • Dong, Gang & Huang, Rongbing & Ng, Peggy, 2016. "Tacit collusion between two terminals of a port," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 93(C), pages 199-211.
    • Handle: RePEc:eee:transe:v:93:y:2016:i:c:p:199-211
    DOI: 10.1016/j.tre.2016.06.001
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