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

Published online by Cambridge University Press:  29 October 2018

Yangjun Wang  and
Ren Zhang
Yangjun Wang*
Affiliation:
(College of Meteorology and Oceanography, National University of Defense Technology, Nanjing 210010, China)
Ren Zhang
Affiliation:
(College of Meteorology and Oceanography, National University of Defense Technology, Nanjing 210010, China)
*
(E-mail: wyjscholar@sina.com)
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Abstract

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.

Keywords

Bi-level game modelArctic routesGeneralised Nash equilibriumElastic demand
Type
Research Article
Information
The Journal of Navigation , Volume 72 , Issue 2 , March 2019 , pp. 269 - 289
Copyright
Copyright © The Royal Institute of Navigation 2018 

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