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Container Port Pricing Structure: A Vertical Market Model

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  • Leonardo J. Basso
  • Sergio Jara-Díaz
  • José Muñoz-Figueroa

Abstract

A three-stage game is used to model interactions between users, a shipping company, and a container port. Emphasis is placed on modelling the many services provided and priced by a port in order to compare pricing structures and price levels, and the subsequent division of surplus between agents under different port objectives (profit maximisation, efficiency, and second best). We find a strong trade-off between the benefits of the shipping company and those of the port, where the access price (a proxy for a fixed fee) is the preferred instrument to extract/inject surplus, while the other prices induce desired behaviours downstream.

Suggested Citation

  • Leonardo J. Basso & Sergio Jara-Díaz & José Muñoz-Figueroa, 2017. "Container Port Pricing Structure: A Vertical Market Model," Journal of Transport Economics and Policy, University of Bath, vol. 51(2), pages 75-7-94.
    • Handle: RePEc:tpe:jtecpo:2017:51:2:75--94
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