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Cooperation and competition in the cargo liner shipping industry

Listed author(s):
  • Czerny, Achim I.
  • Mitusch, Kay
Registered author(s):

    It is widespread international practice that cargo liners meet at regular conferences to fix prices and quotas for individual routes. Presently, however, the respective European regulation granting liners an exemption from competition laws is under review. Liners claim that conferences are a necessary pre-condition for the provision of reliable services. In contrast, we demonstrate that there is little evidence for a destabilizing effect of competition, while conferences can themselves give rise to instability. The liners association (ELAA) has, in response to the EU review process, proposed an information exchange system as an alternative. In our view this has some merits. Transfer of data might even be mandatory, information output should be aggregated and anonymized and made available to the general public. We are skeptical, however, about any 'discussions' between liners that go further than anonymized information exchange.

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    File URL: https://www.econstor.eu/bitstream/10419/36413/1/483113034.pdf
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    Paper provided by Technische Universität Berlin, School of Economics and Management in its series Discussion Papers with number 2005/3.

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    Date of creation: 2005
    Handle: RePEc:zbw:tubsem:20053
    Contact details of provider: Web page: http://www.wm.tu-berlin.de/menue/fakultaet_vii/

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    1. Telser, Lester G, 1996. "Competition and the Core," Journal of Political Economy, University of Chicago Press, vol. 104(1), pages 85-107, February.
    2. Sjostrom, William, 1989. "Collusion in Ocean Shipping: A Test of Monopoly and Empty Core Model s," Journal of Political Economy, University of Chicago Press, vol. 97(5), pages 1160-1179, October.
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