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Optimal pricing for priority service and space allocation in container ports

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  • Holguin-Veras, Jose
  • Jara-Diaz, Sergio

Abstract

This paper focuses on the determination of optimal space allocation and optimal pricing for priority systems in container ports. The problem is formulated taking into account the intrinsic and logistic cargo value, and a capacity constraint that considers the various physical requirements of the containers. Prices and space allocations are found for various cases, showing explicitly the role of each element. The resulting models extend classical price differentiation theory, i.e. the inverse elasticity rule, in various directions. Finally, the implications of these results and the corresponding information requirements are clearly established.

Suggested Citation

  • Holguin-Veras, Jose & Jara-Diaz, Sergio, 1998. "Optimal pricing for priority service and space allocation in container ports," Transportation Research Part B: Methodological, Elsevier, vol. 33(2), pages 81-106, April.
    • Handle: RePEc:eee:transb:v:33:y:1998:i:2:p:81-106
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    Cited by:

    1. Xiao, Tingting & Ha, Albert Y., 2018. "Optimal unloading and storage pricing for inbound containers," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 111(C), pages 210-228.

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