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1 results

  • Bi-level Game Model for Interaction between Arctic and Traditional Routes

  • Yangjun Wang, Ren Zhang
  • Journal:
    The Journal of Navigation / Volume 72 / Issue 2 / March 2019
    Published online by Cambridge University Press:
    29 October 2018, pp. 269-289
    Print publication:
    March 2019

  • 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.