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Port Competition Regulation: A Tool for Monitoring for Anti-Competitive Behaviour

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  • Paul E Kent

    (Nathan Associates, Inc., Two Colonial Place, 2101 Wilson Boulevard, Suite 1200, Arlington, Virginia 22201, USA)

  • Asaf Ashar

    (National Ports and Waterways Institute, Louisiana State University, Arlington, Virginia, USA)

Abstract

Experience and research strongly suggest that privatisation has been effective for enhancing efficiencies and lowering costs, provided there is a competitive environment. While governments for the most part have avoided transfers of public sector monopolies to private ones, the result in the port sector has still tended towards highly concentrated markets, as determined by any one of a number of market tests. Fierce competition may exist in such markets, but ports in these circumstances may also be more susceptible to anticompetitive behaviour. Regulators today rely on concentration ratios to measure the extent of firm dominance. These ratios, however, only focus on market structure, and are not indicative of market performance (eg the extent to which conditions may exist for anticompetitive behaviour). This article first reviews the typical ‘tests’ used by countries to determine the extent of market concentration and then presents a model for monitoring the conditions in which anticompetitive behaviour is likely to occur. A test application of the model is demonstrated that can facilitate the regulator’s need to monitor for anticompetitive behaviour.International Journal of Maritime Economics (2001) 3, 27–51. doi: 10.1057/palgrave.ijme.9100004

Suggested Citation

  • Paul E Kent & Asaf Ashar, 2001. "Port Competition Regulation: A Tool for Monitoring for Anti-Competitive Behaviour," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 3(1), pages 27-51, March.
    • Handle: RePEc:pal:marecl:v:3:y:2001:i:1:p:27-51
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    Citations

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    Cited by:

    1. Hamid Saeedi & Bart Wiegmans & Behzad Behdani, 2021. "Measuring concentration in transhipment markets: methodologies and application to a European case," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 23(3), pages 548-568, September.
    2. Assunta Di Vaio & Flavio Boccia & Lourdes Trujillo, 2020. "The cooperation strategies for the performance improvement in the cruise sea–land logistics: evidence from Italy," Quality & Quantity: International Journal of Methodology, Springer, vol. 54(5), pages 1479-1490, December.
    3. Vitor R. Caldeirinha & J. Augusto Felício, 2014. "The relationship between 'position-port', 'hard-port' and 'soft-port' characteristics and port performance: conceptual models," Maritime Policy & Management, Taylor & Francis Journals, vol. 41(6), pages 528-559, November.
    4. Novo-Corti I. & Gonzalez-Laxe F., 2009. "Maritime Transport and Trade: The Impact of European Transport Policy: An Overview of Maritime Freight Transport Patterns," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 131-147.
    5. Caldeirinha, Vitor R. & Felicio, J. Augusto, 2011. "A influência dos factores de caracterização dos portos no desempenho, medido por indicadores operacionais, financeiros e de eficiência [The influence of factors characterizing the performance of po," MPRA Paper 30009, University Library of Munich, Germany.
    6. Ricardo J. Sanchez & Gordon Wilmsmeier, 2011. "Liner Shipping Networks and Market Concentration," Chapters, in: Kevin Cullinane (ed.), International Handbook of Maritime Economics, chapter 9, Edward Elgar Publishing.
    7. Su-Han Woo & Stephen Pettit & Anthony Beresford & Dong-Wook Kwak, 2012. "Seaport Research: A Decadal Analysis of Trends and Themes Since the 1980s," Transport Reviews, Taylor & Francis Journals, vol. 32(3), pages 351-377, January.
    8. Bandara, Yapa Mahinda & Nguyen, Hong-Oanh, 2016. "Influential factors in port infrastructure tariff formulation, implementation and revision," Transportation Research Part A: Policy and Practice, Elsevier, vol. 85(C), pages 220-232.

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