Bi-level Game Model for Interaction between Arctic and Traditional Routes. (29th October 2018)

• Record Type: Journal Article
• Authors: Wang, Yangjun; Zhang, Ren
• Is Part Of: Journal of navigation. Volume 72:Number 2(2019)
• Page Start: 269
• Page End: 289
• Publication Date: 2018-10-29
• Subjects: Bi-level game model, -- Arctic routes, -- Generalised Nash equilibrium, -- Elastic demand; Navigation -- Periodicals; 623.8905
• DOI: 10.1017/S0373463318000759
• Languages: English
• ISSNs: 0373-4633

Abstract

Abstract : This paper proposes a bi-level model from the perspective of game theory to describe the effect of the rise of Arctic shipping routes on traditional routes and their response. The upper-level model demonstrates the competition between shipping companies that maximise their own profits via speed adjustment, which can be presented as a generalised Nash equilibrium problem and is solved by the generalised reduced-gradient method. The lower-level model illustrates the response of customers who reassign their demands with an elastic total demand, which is presented as a logit-type multi-path assignment problem and is solved by the iterative balancing method. A case study is used to examine the rationality of the proposed model and algorithm.