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Gateways and intermodal pricing
Achim Czerny, Berlin University of Technology, Germany
Abstract
Gateways connect different modes of transport. In this paper we explore the effect of gateways on intermodal pricing (i.e. the prices for transport services including different modes), capacities, and profits using a three-stage game. In the first stage firms cooperatively decide whether to build a gateway or not. In the second stage firms decide on capacity levels. With gateway capacities are chosen cooperatively. Without gateway firms individually choose capacities. In the third stage firms individually choose prices. The game is applied to horizontally integrated firms (i.e. firms providing land- and seaside services) and horizontally separated firms (i.e. firms providing either land- or seaside services).
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