Port Privatization in an International Oligopoly

Abstract

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in EconStor may AbstractWe investigate how port privatization affects port charges, firm profits, and welfare. Our model consists of an international duopoly with two ports and two markets. When the unit transport cost is large, privatization of ports decreases the prices for port usage, although neither government has an incentive to privatize its port. The equilibrium governmental decisions are inconsistent with the desirable outcome if the unit transport cost is not large enough. The smaller country's government is more likely to privatize its port, although the larger country's government is more likely to nationalize its port to protect its domestic market.

Hub port competition and welfare effects of strategic privatization

“…These indi¤erence curves are upward sloping for 1 > T G 1 ( 2 ) and downward sloping for 1 < T G 1 ( 2 ). 17 The welfare level of country 1 is larger since the curve lies to the right (see (10)). Suppose that the rival's port charges are given by P P 2 and GG 2 under P P and GG in Figure 5.…”

Game Theory and Port Economics: A Survey of Recent Research

“…The studies of Czerny et al . (), Matsushima and Takauchi (), and Xiao et al . () analyze the effects of ownership on port charges, investment, profits and welfare in a competitive environment.…”

International Trade and Environmental Regulation

“…Choi and Lim (2016) investigate the performance of port privatization on the basis of an import-competing trade model. With two countries and two ports as in Matsushima and Takauchi (2014), they assume only one country acts as the consumer market of the world productions. The import tariff impacts the decision of port ownership.…”

“…Xiao et al (2012) find out that when the ports have the same ownership, the port capacity investment decreases with the private sector participation. On the contrary, Matsushima and Takauchi (2014) consider the port investment when the small country privatizes its port, and the large country nationalizes. The authors show that the privatized port has stronger incentive to engage in port cost-reducing activities.…”

“…For example,Matsushima and Takauchi (2014) assume Home has a unit country size, and Foreign has b. To compare the country sizes, b changes while the other country's population is fixed.…”