2662. Game Theory to achieve sustainable RoRo shipping through competition
Invited abstract in session MA-32: Seaside Planning-1, stream Maritime and Port Logistics.
Monday, 8:30-10:00Room: Maurice Keyworth 1.09
Authors (first author is the speaker)
| 1. | Michell Queiroz
|
| Department of Management Science, Technical University of Denmark | |
| 2. | Dario Pacino
|
| Department of Management, Technology and Economics, Technical University of Denmark | |
| 3. | Seyed Parsa Parvasi
|
| Management, Technical University of Denmark (DTU) |
Abstract
Short Sea Shipping (SSS) is a transportation mode that has garnered attention for its potential to alleviate the negative externalities associated with road transport. SSS offers several advantages, including increased safety, reduced infrastructure investment, and environmental benefits. This research specializes in Roll-on/Roll-off (RoRo) freight shipping, focusing on wheel-based cargo such as trucks and trailers. SSS is often underestimated by stakeholders in the logistics and transport sector, as they do not view it as a viable alternative. To encourage a shift of cargo from road to sea, we employ Game Theory to model the competitive freight transport market. Structured as a multi-leader-common-follower game, carriers set prices and service frequencies, and shippers allocate demand based on perceived utility. This problem setting allows carriers to react to the competition's decisions in an effort to maximize their payoff. Understanding the cause-and-effect relationships between actions in different modes is essential, as an attempt to attract more demand can trigger adjustments from competitors who wish to maintain market position. The solution approach iteratively computes best responses for each carrier, ensuring convergence to a stable strategy. The study also provides insights into how carriers can optimize their decisions by prioritizing the stability and predictability of long-term contracts, while still considering the flexibility offered by short-term contracts.
Keywords
- Game Theory
- Behavioural OR
- Maritime applications
Status: accepted
Back to the list of papers