Optimal pricing for priority service and space allocation in container ports |
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Institution: | 1. Renewable Energy School, North China Electric Power University, Beijing 102206, China;2. State Key Laboratory of Water Environment Simulation and Pollution Control, School of Environment, Beijing Normal University, Beijing 100875, China\n |
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Abstract: | This paper focuses on the determination of optimal space allocation and optimal pricing for priority systems in container ports. The problem is formulated taking into account the intrinsic and logistic cargo value, and a capacity constraint that considers the various physical requirements of the containers. Prices and space allocations are found for various cases, showing explicitly the role of each element. The resulting models extend classical price differentiation theory, i.e. the inverse elasticity rule, in various directions. Finally, the implications of these results and the corresponding information requirements are clearly established. |
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