Games In Liner Shipping Strategic Alliances

The interest in liner shipping strategic alliances has culminated in a number of studies in recent years. Shippers' request of higher services and liners' desire of lower costs result in the formation of liner shipping strategic alliances. The aim of this paper is to apply a game-theoretic framework to liner shipping strategic alliances.First, this paper points out that liner shipping strategic alliances have been dominant forms since the early 1990s.Resources that may be idle or not used to their full potential can be utilized more effectively when employed in an liner shipping strategic alliance, which brought forward the issue of success through the creation of a collaborative advantage as opposed to a competitive advantage.Second, it introduces the theoretic framework of Game theory as preparation. Game theory is concerned with the study of multi-person decision problems. Each liner company must consider what the others will do before setting up a strategy and during its implementation period. Game theory are relevant for the understanding of cooperative strategy in liner shipping strategic alliances.Third, the main parts are divided into two:cooperation in short term and alliance in long term. The differences between them arc the amounts of sub-game and the pay-off in furture. Cournot model is used to solve the problems.Finally, this paper concludes analysis procedures. Then it indicates the further trends which may be valuable. This is a paper for master graduation, however, it could be helpful for liner companies' decision making.