A Game Theoretic Analysis of a Regional Approach Toward the Sustainability of Kolkata-Agartala Transhipment Route
18 Pages Posted: 18 Jan 2015
Date Written: 2012
This paper attempts to determine the stability of equilibrium in term of a sub game perfect Nash solution of equilibrium transshipment charges for the external transport network. This paper examines the perspectives of transshipment route from Kolkata to Agartala and the strategic options of the transshipping countries, namely Bangladesh and Myanmar. The development of a new transshipment route through Myanmar, depriving Bangladesh of its former monopoly, has modified the situation profoundly. The long run sustainability of such transshipment route depends on regional cooperation among these countries in a political emotional state of nature and guaranteed a stable equilibrium of such transshipment route in the presence of active threat of losing export market for Tripura, if retaliate by either of the member country.
Keywords: Transshipment Route, Game Theory, Nash Equilibrium, Cartel
JEL Classification: C62, C71, D43, R58
Suggested Citation: Suggested Citation