Bi-level Game Model for Interaction between Arctic and Traditional Routes
This paper proposes a bi-level model from the perspective of game theory to describe the effect of the rise of Arctic shipping routes on traditional routes and their response. The upper-level model demonstrates the competition between shipping companies that maximise their own profits via speed adju...
| Published in: | Journal of Navigation |
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| Main Authors: | , |
| Format: | Article in Journal/Newspaper |
| Language: | English |
| Published: |
Cambridge University Press (CUP)
2018
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| Subjects: | |
| Online Access: | http://dx.doi.org/10.1017/s0373463318000759 https://www.cambridge.org/core/services/aop-cambridge-core/content/view/S0373463318000759 |
| Summary: | This paper proposes a bi-level model from the perspective of game theory to describe the effect of the rise of Arctic shipping routes on traditional routes and their response. The upper-level model demonstrates the competition between shipping companies that maximise their own profits via speed adjustment, which can be presented as a generalised Nash equilibrium problem and is solved by the generalised reduced-gradient method. The lower-level model illustrates the response of customers who reassign their demands with an elastic total demand, which is presented as a logit-type multi-path assignment problem and is solved by the iterative balancing method. A case study is used to examine the rationality of the proposed model and algorithm. |
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