A game-theoretical approach for modeling competitions in a maritime supply chain

Liying Song, Dong Yang, Anthony Theng Heng Chin, Guangzhi Zhang, Zhengbing He, Wei Guan, Baohua Mao

Research output: Journal article publicationJournal articleAcademic researchpeer-review

19 Citations (Scopus)

Abstract

To accommodate the structural changes in logistics, competitions along a maritime supply chain are more intensive than before. This paper adopts a two-stage noncooperative game-theoretical approach to model the horizontal and vertical interactions among liners and ports. In the first stage, Bertrand game is applied to model the interactions between two liners. When the shipping line decides which port to call, a multinomial Logit model is applied. In the second stage, Bertrand game is applied to model the competitions between two ports. Nash equilibrium is derived by solving the Bertrand games. A numerical example is provided as a case study.
Original languageEnglish
Pages (from-to)976-991
Number of pages16
JournalMaritime Policy and Management
Volume43
Issue number8
DOIs
Publication statusPublished - 16 Nov 2016

Keywords

  • Bertrand game
  • competition
  • equilibrium
  • Game theory

ASJC Scopus subject areas

  • Geography, Planning and Development
  • Transportation
  • Ocean Engineering
  • Management, Monitoring, Policy and Law

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