IDEAS home Printed from https://ideas.repec.org/a/hin/jnlmpe/1626429.html
   My bibliography  Save this article

Optimization of the Pricing Strategies between Container Terminals under Deregulation

Author

Listed:
  • Gang Dong

Abstract

According to the dual-track system implemented on port tariffs in past years, the vast majority of state-owned container terminals adopt the standard rates specified by China’s Ministry of Transport, while the container terminals of joint ventures are permitted to charge their stevedoring rate with a 20% float ratio up and down. The latest port reform was to improve the port tariff formation mechanism by speeding up the implementation of detailed list and public notice on port pricing. This paper analyses the optimization of the pricing strategies between container terminals under deregulation. Based on a two-stage noncooperative game theoretical model, the Nash equilibria of pricing strategy profiles between container terminals of one port under deregulation are derived. Although the price-matching strategy may be employed by the foreign-owned container terminal, which usually resulting in a total social welfare loss, the price-matching pricing strategy not being adopted by the state-owned container terminal will avert tacit collusion. Numerical simulation is applied to the case of Shenzhen Port.

Suggested Citation

  • Gang Dong, 2018. "Optimization of the Pricing Strategies between Container Terminals under Deregulation," Mathematical Problems in Engineering, Hindawi, vol. 2018, pages 1-11, November.
    • Handle: RePEc:hin:jnlmpe:1626429
    DOI: 10.1155/2018/1626429
    as

    Download full text from publisher

    File URL: http://downloads.hindawi.com/journals/MPE/2018/1626429.pdf
    Download Restriction: no
    File URL: http://downloads.hindawi.com/journals/MPE/2018/1626429.xml
    Download Restriction: no
    File URL: https://libkey.io/10.1155/2018/1626429?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Yuan, Kebiao & Wang, Xuefeng, 2024. "Research on evolutionary game and stability of port cooperation," Transport Policy, Elsevier, vol. 153(C), pages 97-109.
    2. Lu, Bo & Fan, Lijie & Wang, Huipo & Moon, Ilkyeong, 2024. "Price-cutting or incentive? Differentiated competition between regional asymmetric ports," Transport Policy, Elsevier, vol. 147(C), pages 215-231.
    3. Alejandro Vega-Muñoz & Guido Salazar-Sepúlveda & Nicolás Contreras-Barraza & Lorena Araya-Silva, 2021. "Port Governance and Cruise Tourism," Sustainability, MDPI, vol. 13(9), pages 1-16, April.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hin:jnlmpe:1626429. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Mohamed Abdelhakeem (email available below). General contact details of provider: https://www.hindawi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.