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Passive or proactive capacity sharing? A perspective of cooperation and competition between two regional ports

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  • Lang Xu
  • Fengjue Xie
  • Chuanxu Wang

Abstract

Port operations in an uncertain environment and compete with nearby ports in a same region to incentive carriers. In this paper, we consider a game-theoretical model to analyze the co-opetition between two ports with capacity sharing. Three competitive game interactions are discussed, namely, benchmark model, passive sharing, and proactive sharing to maximize the payoff by determining optimal berth quantity and service price. The observations show that when faced with a strengthened rival with sufficient capacity, the optimal ports’ decision for the capacity sharing mode is determined by the tradeoff between the benefit that is gained from the sharing capacity and the losses that are caused by port competition. Moreover, our research comprehensively examines how the port operation cost and the difference between the potential capacity demand of two terminals affect ports’ optimal strategy selection and presents a broad set of decision outcomes, which provides new insights for port coopetition.

Suggested Citation

  • Lang Xu & Fengjue Xie & Chuanxu Wang, 2022. "Passive or proactive capacity sharing? A perspective of cooperation and competition between two regional ports," Maritime Policy & Management, Taylor & Francis Journals, vol. 49(4), pages 492-509, May.
  • Handle: RePEc:taf:marpmg:v:49:y:2022:i:4:p:492-509
    DOI: 10.1080/03088839.2021.1876938
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    Citations

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    Cited by:

    1. Lu, Bo & Xu, Xin, 2024. "Digital transformation and port operations: Optimal investment under incomplete information," Transport Policy, Elsevier, vol. 151(C), pages 134-146.
    2. Weichen Liu & Weixiao Chen & Youhui Cao, 2023. "The Evolution of the Waterfront Utilization and Sustainable Development of the Container Ports in the Yangtze River: A Case Study of the Yangtze River Delta," Land, MDPI, vol. 12(4), pages 1-21, March.
    3. Xu, Haonan & Liu, Jiaguo & Xu, Xiaofeng & Chen, Jihong & Yue, Xiaohang, 2024. "The impact of AI technology adoption on operational decision-making in competitive heterogeneous ports☆," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 183(C).
    4. Vasilev Julian & Sulova Snezhana, 2023. "An Approach for the In-Depth Data Analysis of the Marine Traffic of Independent Nearby Ports," Folia Oeconomica Stetinensia, Sciendo, vol. 23(2), pages 402-426, December.
    5. 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.

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