Study on Profit Distribution and Stability of P3 Network Alliance Based on Game Theory
The shipping alliance has gradually become the main trend of the shipping market. As the largest shipping alliance, the P3 Network Alliance (P3) will have a huge impact on the entire shipping market. To investigate the effectiveness and ensure the efficient operation of the alliances, this paper takes the P3 for example, adopts Nash equilibrium and Pareto equilibrium methods, based on the profit distribution and stability of kernel solution of cooperative game theory, and proposes an improved Shapley distribution model modified by three impact factors of risk taking, market competitiveness and investment to analyze the 3-member alliances in detail. The results have shown that, the P3 could obtain greater profits and reduce capacity, effectively to ease the downturn shipping market situation of supply and demand imbalance. In the meanwhile, a more reasonable approach of the profit distribution is proposed to ensure the efficient operation of the P3. Besides, the biggest distribution ratio of Maersk as the only dominant member of the P3 is provided, and in this state, the distribution interval of the other two non-dominant members is given, to ensure their loyalty to the P3 without selecting other minor alliance policy. The modeling approach and results can provide some inspiration for the operation of alliances in other form.
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Supplemental Notes:
- This paper was sponsored by TRB committee AW030 Marine Environment. Alternate title: Profit Distribution and Stability of the P3 Network Alliance Based on Game Theory.
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Corporate Authors:
500 Fifth Street, NW
Washington, DC United States 20001 -
Authors:
- Wang, Zhao-jing
- Hu, Hao
- Zeng, Qing-cheng
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Conference:
- Transportation Research Board 94th Annual Meeting
- Location: Washington DC, United States
- Date: 2015-1-11 to 2015-1-15
- Date: 2015
Language
- English
Media Info
- Media Type: Digital/other
- Features: Figures; References; Tables;
- Pagination: 16p
- Monograph Title: TRB 94th Annual Meeting Compendium of Papers
Subject/Index Terms
- TRT Terms: Competition; Game theory; Investments; Risk taking; Shipping; Strategic alliances
- Uncontrolled Terms: Profit distribution
- Subject Areas: Economics; Freight Transportation; Marine Transportation; I10: Economics and Administration; I70: Traffic and Transport;
Filing Info
- Accession Number: 01557752
- Record Type: Publication
- Report/Paper Numbers: 15-4878
- Files: TRIS, TRB, ATRI
- Created Date: Mar 25 2015 12:01PM