A game-theoretical model of port competition on intermodal network and pricing strategy. (June 2018)

• Record Type: Journal Article
• Authors: Zhang, Qi; Wang, Wenyuan; Peng, Yun; Zhang, Junyi; Guo, Zijian
• Is Part Of: Transportation research. Volume 114(2018)
• Page Start: 19
• Page End: 39
• Publication Date: 2018-06
• Subjects: Port competition -- Nash equilibrium -- Dry port location -- Pricing strategy -- Intermodal transport; Logistics -- Periodicals; Transportation -- Periodicals; 388.011
• DOI: 10.1016/j.tre.2018.01.008
• Languages: English
• ISSNs: 1366-5545

Abstract

Highlights: A game model is developed to decide intermodal transport network and port price. An adapted algorithm is proposed based on the properties of equilibrium solution. The impact of dry port on the port competition is examined based on a case study. The development of dry port could improve the share of intermodal transport. Abstract: This paper develops a game-theoretical model of port competition for the intermodal network design and pricing strategy problem. In the model, port operators determine the dry port locations and pricing strategy to maximize profit considering the shipper's route choice behavior. According to the characteristics of the Nash equilibrium solution for reduced strategy sets, a Nash equilibrium solution algorithm is adapted. We describe a case study involving the competition between Dalian port and Yingkou port in China. We find an obvious link between dry port location and geography. The modal split is related to the number and locations of dry ports.