Competition and contestability in trans-Tasman liner shipping industry : a thesis presented in fulfilment of the requirements for the degree of Masters of Applied Economics at Massey University
dc.contributor.author | Li, Gang Richard | |
dc.date.accessioned | 2017-09-26T19:26:17Z | |
dc.date.available | 2017-09-26T19:26:17Z | |
dc.date.issued | 1997 | |
dc.description.abstract | This study examines competition and contestability in trans-Tasman liner shipping industry for the period of waterfront deregulation. Contestability, often known as a benchmark in markets, is one of the most controversial issues of industrial organization theory. In this study, contestability in trans-Tasman liner shipping industry is analyzed, since this industry had been highly regulated and protected by trade union policy and practice until the recent waterfront reforms. Using a normative analysis, the study finds that parts of the trans-Tasman liner trade exhibit characteristics of contestability, such as frequent entry/exit, an absence of sunk costs, and pricing behaviour. In contrast to the predictions of contestability theory, actual competition, rather than potential competition has been found to have a substantial effect on market performance. Hence, the study further employs a "Conjectural Variations" model to examine firms' strategic behaviours. The simulation results indicate that since post-deregulation, a period of intensive competition has occurred. The study suggests that contestability theory may not be robust with small deviations from the assumptions. Instead, contestability theory supplements industrial organization theory with a new device specializing in performance implications of competition. In practice, the study concludes that deregulation has brought very substantial benefits to the shippers and to the national economy. As a result, a new wave of restructuring in the liner shipping industry and in the whole ports/shipping network is just beginning. | en_US |
dc.identifier.uri | http://hdl.handle.net/10179/12004 | |
dc.language.iso | en | en_US |
dc.publisher | Massey University | en_US |
dc.rights | The Author | en_US |
dc.subject | Tasman Sea | en_US |
dc.subject | Shipping | en_US |
dc.subject | Economic aspects | en_US |
dc.subject | Deregulation | en_US |
dc.subject | New Zealand | en_US |
dc.subject | Australia | en_US |
dc.subject | Competition | en_US |
dc.title | Competition and contestability in trans-Tasman liner shipping industry : a thesis presented in fulfilment of the requirements for the degree of Masters of Applied Economics at Massey University | en_US |
dc.type | Thesis | en_US |
massey.contributor.author | Li, Gang Richard | |
thesis.degree.discipline | Applied Economics | en_US |
thesis.degree.grantor | Massey University | en_US |
thesis.degree.level | Masters | en_US |
thesis.degree.name | Masters of Applied Economics (M. Appl. Econ.) | en_US |
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