analytically derive the welfare effect of privatization of port 2 and determine the optimal degree of privatization. Under Cournot … necessarily a one-size-fits-all strategy for port privatization, and it is important for policymakers to consider the effects of … market demand, port competition factors in port privatization. …

We 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 …