Abstract:
The pricing strategy and collusion tendency of differentiated ports are studied for single static gam and sequential game by the improved Hotelling model. In order to analyze the mechanism of tacit collusion and its influencing factors of pricing, the equilibrium results between single static game and dynamic game are compared. The infinitely repeated game model is established based on sequential game and grim strategy, and the stability of tacit collusion in the long-term game is analyzed. The research finds that only when the difference in unit container handling cost between ports meets certain conditions, one of the ports can obtain the pricing advantage or throughput advantage, and there is the possibility of price manipulation through tacit collusion. The price leader has no motivation to betray collusion while the times of game increases. Meantime, the price follower’s motivation for betrayal of collusion is related to the cost difference and critical discount factor.