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Optimal pricing policy of continental transit route: a study of Kolkata-Agartala transit route

Author

Listed:
  • Sen, S. K.
  • Mukhopadhyay, I
  • Gupta, S

Abstract

The aim of this paper is to investigate the pricing policy of transhipment route for India to move cargo through Bangladesh from Kolkata port to the capital city of Tripura i.e. Agartala. Initially, Bangladesh was hesitating to allow India to provide transhipment facility for the north eastern region but India reciprocate it in right direction by providing similar facility to Bangladesh to reach the Himalayan landlocked countries like Nepal and Bhutan, thereby, actively participate in moving towards an integrated transport network for this region as a whole. The future opening of Myanmar route further gives some relief to India. Most of the cargo originates from Kolkata (Port) and terminates at Guwahati and distributed to various destinations of north eastern states. We try to investigate the pricing policy of such transhipment route for India in terms of a Bertrand type model with non homogeneous type cargo movement where the unit price of cargo transhipment taken as a proxy for such transhipment route.

Suggested Citation

  • Sen, S. K. & Mukhopadhyay, I & Gupta, S, 2011. "Optimal pricing policy of continental transit route: a study of Kolkata-Agartala transit route," MPRA Paper 41005, University Library of Munich, Germany, revised 04 Apr 2012.
    • Handle: RePEc:pra:mprapa:41005
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    References listed on IDEAS

    as
    1. MacKellar, Landis & Woergoetter, Andreas & Woerz, Julia, 2000. "Economic Development Problems of Landlocked Countries," Transition Economics Series 14, Institute for Advanced Studies.
    2. World Bank, 2004. "Trade Policies in South Asia : An Overview, Volume 2. An Overview," World Bank Publications - Reports 15657, The World Bank Group.
    3. Rephann, Terance & Isserman, Andrew, 1994. "New highways as economic development tools: An evaluation using quasi-experimental matching methods," Regional Science and Urban Economics, Elsevier, vol. 24(6), pages 723-751, December.
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    More about this item

    Keywords

    Transhipment Route; Bertrand competition; Integrated Transport Network;
    All these keywords.

    JEL classification:

    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy
    • C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation, Validation, and Selection
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection

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