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A Tale of Two Ports: The Economic Geography of Inter‐City Rivalry

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  • Ngo Van Long
  • Kar‐yiu Wong

Abstract

This paper examines how two geographically separated ports compete for a market consisting of manufacturing firms located between them. There is a service firm in each port, and these two firms, taking the infrastructure provided by their governments as given, compete in prices. The governments compete in terms of investment in infrastructure. This paper shows that there are cases in which both the firm and the government in the port that has a longer history may have the first‐mover advantage. In particular, the government can provide a credible threat by overinvesting in infrastructure.

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  • Ngo Van Long & Kar‐yiu Wong, 2009. "A Tale of Two Ports: The Economic Geography of Inter‐City Rivalry," Review of International Economics, Wiley Blackwell, vol. 17(2), pages 261-279, May.
    • Handle: RePEc:bla:reviec:v:17:y:2009:i:2:p:261-279
    DOI: 10.1111/j.1467-9396.2009.00822.x
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    Cited by:

    1. Eddery Lam & Chi-Yin Wu, 2016. "The Economics of Inter-City Competition in Financial and Distribution Markets," Journal of Economics and Management, College of Business, Feng Chia University, Taiwan, vol. 12(1), pages 85-117, February.

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