The coopetition game in international liner shipping

In maritime freight transportation, carriers build collaborative relationships with other carriers while competing with each other to optimize their own profits. In such a scenario, a game of coopetition is formed. We formulate a nonlinear mixed-integer problem to determine the optimal levels of coo...

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Bibliographic Details
Published inMaritime policy and management Vol. 44; no. 4; pp. 474 - 495
Main Authors Lin, Dung-Ying, Huang, Chien-Chih, Ng, ManWo
Format Journal Article
LanguageEnglish
Published Abingdon Routledge 19.05.2017
Taylor & Francis Ltd
Subjects
Ascent
ascent heuristic
Coopetition
Economic models
Frameworks
Freight transportation
Game theory
Heuristic
international shipping
Jacobi approach
Marine transportation
maritime freight
Maritime policy
Mathematical models
Optimization
Profit
Profits
Shipping
Shipping industry
Transportation
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Summary:In maritime freight transportation, carriers build collaborative relationships with other carriers while competing with each other to optimize their own profits. In such a scenario, a game of coopetition is formed. We formulate a nonlinear mixed-integer problem to determine the optimal levels of coopetition for a single company and embed the resulting problem into a general game theoretic framework. A diagonalization algorithm that incorporates an ascent direction search technique is developed to effectively evaluate the game. The numerical results show that carriers choose similar coopetition levels to maximize their profits, and the coopetition game can reach equilibrium under general conditions.
ISSN:0308-8839
1464-5254
DOI:10.1080/03088839.2017.1295325