Abstract
The paper presents a bi-level modeling approach for capturing hierarchical relationships among major carriers and finding carrier decision-making processes in maritime freight networks. Carriers are transportation service providers and generally include OC (Ocean Carrier), LC (Land Carrier) and PTO (Port Terminal Operator). They make pricing and routing decisions at each part of the intermodal freight system and have sequential relationships. OCs are considered as the leaders in maritime shipping markets since they generally choose both PTOs and LCs. The individual carrier group determines the optimal service cost and route that give the greatest profit. Hierarchical interactions between OCs and PTOs/LCs are captured in a bi-level model. The concept of multi-leaderfollower game is applied to the bi-level game, assuming multiple and competitive leaders.
Published Version
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