Developing a game theory competition analysis for the liner container shipping

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Awarding institution
  • University of Strathclyde
Date of award
  • 2016
Thesis identifier
  • T14382
Person Identifier (Local)
  • 201291231
Qualification Level
Qualification Name
Department, School or Faculty
  • The liner container shipping industry plays an essential role for the viability of international trade and continuous flow of the various semi-finished and finished products, from main production areas to end consumption points throughout global supply chains. In the recent decade, the liner container shipping counterparties faced many managerial challenges such as; strict environmental regulatory enforcement of regulatory bodies, fleet capacity oversupply, unstable bunker prices, insufficient freight rates and operational barriers in marine transport infrastructures. Therefore, significance of the robust competitive decision-makings, for both shipping liners and port managements, are critical to develop resilient strategies against the emerged challenges in the liner container shipping system.Broadly speaking, competitiveness of the liner container shipping counterparties can be analysed with various qualitative and quantitative models and methods. The game theory is one of the quantitative tactical behaviour methods used in order to analyse competition outcomes of each player for each chosen strategy, whilst taking competitor behaviours within the game concept into consideration.This thesis deals with the practical application of a non-cooperative four rational players' game methodology with complete/incomplete information to analyse competition outcomes of the liner container shipping operations, according to Cournot-Nash and Bayesian-Nash equilibrium concepts. The research includes not only competitiveness of the shipping liners, but also competitiveness of the container port terminal managements and bunker suppliers.The approach developed in this study utilises different liner shipping game concepts to achieve the determined objectives of the main methodology. The objectives of the methodological framework include new generation shipping alliance competition, holistic port competition, and a scenario based LNG bunkering supply competition. The methodological formulations are mathematically integrated to different methodological outcomes in each case study. It is proposed that the outcomes of this study will provide significant outcomes and robust decision support rationales in order to develop adaptive competition strategies for the liner container shipping counterparties.
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