Pricing and competition in a shipping market with waste shipments and empty container repositioning

In this paper, the authors study a shipping market with carriers providing services between two locations. Shipments are classified into two categories: goods and waste. Trade imbalance allows low-valued waste to be shipped at bargain rates. If imbalance persists, empty containers must be repositioned from a surplus location to a shortage location. Carriers decide prices, which will affect the demand. The authors build a monopoly and a duopoly model to find the optimal pricing strategy for carriers. The authors also analyze how the profit of a carrier is affected by price sensitivity, cost structure and competition intensity.

Language

  • English

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Filing Info

  • Accession Number: 01597660
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Mar 3 2016 1:39PM