We develop a container industry-specific real options investment model in oligopolistic competition taking into account endogenous price function, fuel-efficient investment, endogenous lead times, and endogenous price formation in the second-hand vessel market. We assess how optimal capacity is influenced by competitive intensity, number of players, volatility, fuel-efficiency, lead time, and cost. Moreover, we investigate optimal investment policies. We find that strategic action increases firm value and that it is worthwhile to consider alliances. Additionally, players in the market should consider retrofitting old vessels for fuel economy in economic downturns and using new, fuel-efficient vessels for capacity expansion in market upswings.


    Access

    Access via TIB

    Check availability in my library

    Order at Subito €


    Export, share and cite



    Title :

    Investment into container shipping capacity: A real options approach in oligopolistic competition


    Contributors:


    Publication date :

    2016




    Type of media :

    Article (Journal)


    Type of material :

    Print


    Language :

    English



    Classification :

    BKL:    85.00 / 55.82 Güterverkehr





    Strategic maritime container service design in oligopolistic markets

    Angeloudis, Panagiotis / Greco, Luciano / Bell, Michael G.H. | Elsevier | 2016


    Airline fare competition : econometric evidence of oligopolistic coordination

    Barth, Richard R. (Richard Russell) | DSpace@MIT | 1990

    Free access

    Competition policy in liner shipping: policy options

    van der Ziel, G. J. / International Association of Maritime Economists / Universitaire Faculteiten Sint-Ignatius te Antwerpen | British Library Conference Proceedings | 1994