A game-theoretical model of port competition on intermodal network and pricing strategy

This paper develops a game-theoretical model of port competition for the intermodal network design and pricing strategy problem. In the model, port operators determine the dry port locations and pricing strategy to maximize profit considering the shipper's route choice behavior. According to the characteristics of the Nash equilibrium solution for reduced strategy sets, a Nash equilibrium solution algorithm is adapted. We describe a case study involving the competition between Dalian port and Yingkou port in China. We find an obvious link between dry port location and geography. The modal split is related to the number and locations of dry ports.