ABSTRACT
It is found that the partial derivatives are positive. The port price would approach infinity if no boundary for maximum port price was set. Thus, we can observe that the port collusion model yields higher port price than that of the non-cooperative model. The result stems from the monopolistic power that the ports now possess, rendering them a free hand in escalating their prices to maximize their profits. Moving forward, this analysis would help better explain the competitive landscape and strategies among regionally bounded terminal operators.
