This paper examines the effect of inter-port competition between two ports by applying a game theoretical approach. We construct a non-cooperative game theoretic model where each port selects port charges strategically in the timing of port capacity investment. We derive the Nash equilibrium and...

We focus on non-storability, a characteristic of shipping freight that leads to an enormous gap between the widely-used no-arbitrage pricing theory and shipping freight derivative markets. Our main contribution is to modify and generalize the Bessembinder and Lemmon (2002) model. Equilibrium...