abbr. SJ GMU
ISSN 2657-5841 (printed)
ISSN 2657-6988 (online)
DOI: 10.26408
Game Theory Analysis in Indonesia’s Shipping Industry: Case Study Agreement between PT. X and PT. Y
https://orcid.org/0000-0001-7060-14081
Politeknik Pelayaran Surabaya, JL. Gunung Anyar Boulevard No. 1, Surabaya, Indonesia,
e-mail: susantoheru329@gmail.com
Abstract:
Nowadays, the container shipping industry in Indonesia has a tendency to oligopoly, even in one shipping route. Two big shipping liners in Indonesia, PT. X and PT. Y, have been dominating sales on the Surabaya-Banjarmasin route. The aim of this study is to know how the liners behave in an oligopoly, making decisions that are profitable for both parties. The agreement on challenge, competition, and cooperation between PT. X and PT. Y in serving shipping services is the main focus in this study. The methodology used is a game theory approach to show the possible strategies in rates and supply competition. The result shows that the agreement between PT. X and PT. Y consisted of price decision and supply quantity. The price decision is rated at a lower price of USD 300/TEU where P = MC which has no incentive. While the agreement on supply quantity is 26.000 TEUs in total. Moreover, the cooperative agreement between the shipping liners is a joint allience which not depend on each capacity ratio.
Keywords:
container, shipping industry, oligopoly, game theory
Issue:
Pages:
7
16
Doi:
Submitted:
17.10.2019
Accepted:
30.12.2019
Published:
31.03.2020
Download full text in pdf:
This article is an open access article distributed under a Creative Commoms Attribution (CCBY 4.0) licence
References:
Amin, T. Al, Adrianto, L., Sartono, B., 2018, Aplikasi Game Theory dalam Kompetisi antar Terminal Peti Kemas di Pelabuhan Tanjung Priok, Warta Penelitian Perhubungan, vol. 29(2), 267, https://doi.org/10.25104/warlit.v29i2.588.
Europe Economics, 2001, Study on Assessment Criteria for Distinguishing between Competitive and Dominant Oligopolies in Merger Control, London, UK.
Gkonis, K., Psaraftis, H., 2009, The LNG Market and a Game Theory Approach to Competition in LNG Shipping, Maritime Economics & Logistics, vol. 11, pp. 227–246.
IOLecture4, 2015, Oligopolistic Competition, Berkeley, USA.
Kementrian Perhubungan, 2013, Statistik Perhubungan 2013 (Buku 1), Jakarta, Indonesia.
Mankiw, N., Taylor, M., 2014, Economics, 3rd Ed., Hampshire: Cengage Learning EMEA, UK.
Noerhudha, J., 2014, Pelindo III Planning and Progress Development Along Madura Strait, Jakarta, Indonesia.
Nurwana, I., 2013, Kapal Peti Kemas, http://potransportasinews.blogspot.nl/2013/03/kapal-peti-kemas.html, retrieved December 10, 2014.
Pratidinatri, N., 2014, Model Pengukuran Kinerja Logistik: Tinjauan Sektor Transportasi Laut, Institut Teknologi Sepuluh November, Surabaya, Indonesia.
Saeed, N., Larsen, O.I., 2010, Container Terminal Concession: A Game Theory Application to the Case of the Ports of Pakistan, Maritime Economics & Logistics, vol. 12(3), pp. 237–262.
Setyowati, E., 2014, Mimpi Tol Laut Jokowi Seharga Rp. 700 Triliun, http://bisniskeuangan.kompas.com/read/2014/11/23/104559626/.Mimpi.Tol.Laut.Jokowi.Seharga.Rp.
700.Triliun, retrieved December 10, 2014.
Shi, X., 2011, Contemporary Liner Shipping Business – A Game Theoritical Application, University of Hamburg, Germany, https://d-nb.info/1027573916/34.
Song, D., Panayides, P., Wang, T., 2001, Inter-Organisational Relations in Liner Shipping as a Cooperative Game, Eastern Asia Society for Transportation Studies, vol. 3, pp. 247–262.
Xiao, X., Zhiming, Z., 2014, Cooperation Vs. Non- Cooperation beetwen Ports and Shipping Lines: a Game Theory Approach, University of Gothenburg, Gothenburg, Sweden.
Zeder, R., 2017, The Law of Supply and Demand, https://quickonomics.com/the-law-of-supply-and-demand/, retrieved December 17, 2019.