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Strategic interdependence in capacity expansion: A spatial analysis for port infrastructure services

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  • Hidalgo-Gallego, Soraya
  • Núñez-Sánchez, Ramón
  • Coto-Millán, Pablo

Abstract

This study analyses the possible existence of spatial interdependence in port authorities’ capacity expansions in the port industry. We propose a dynamic model that allows quantifying the degree of port authorities’ interdependence in capacity decisions and simulating a hypothetical scenario of cooperation agreements among different port authorities. The econometric specification is based on a structural model of demand, cost and market equilibrium. The empirical results suggest that strategic interdependence exists in port infrastructure services. Furthermore, using a simulation analysis, we show that incentives to invest in port capacity increase under a cooperative setting.

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  • Hidalgo-Gallego, Soraya & Núñez-Sánchez, Ramón & Coto-Millán, Pablo, 2021. "Strategic interdependence in capacity expansion: A spatial analysis for port infrastructure services," Transportation Research Part A: Policy and Practice, Elsevier, vol. 143(C), pages 14-29.
    • Handle: RePEc:eee:transa:v:143:y:2021:i:c:p:14-29
    DOI: 10.1016/j.tra.2020.11.012
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    More about this item

    Keywords

    Strategic interdependence; Port infrastructure capacity; Port cooperation; Spanish ports;
    All these keywords.

    JEL classification:

    • D4 - Microeconomics - - Market Structure, Pricing, and Design
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • L9 - Industrial Organization - - Industry Studies: Transportation and Utilities
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance

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