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Maritime Policy & Management
The flagship journal of international shipping and port research
Volume 36, 2009 - Issue 5
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Original Articles

Market efficiency within dry bulk markets in the short run: a multi-agent system dynamics Nash equilibrium

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Pages 385-396 | Published online: 14 Jan 2010

References and notes

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  • Market differentiation or the existence of different ship types/sizes not only relates to maximizing scale effects and reducing unit costs, it also allows for the convenience of appropriately serving the demand side or the receiving end, e.g. when only smaller consignments or parcels are required
  • Evans , JJ . 1994 . An analysis of efficiency of the bulk shipping markets . Maritime Policy and Management , 21 ( 4 ) : 311 – 329 .
  • Alizadeh, A. H., 2001, An econometric analysis of the dry bulk shipping industry: Seasonality, market efficiency and risk premia. Phd, City University Business School, London
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  • Engelen , S , Meersman , H and van de Voorde , E . 2006 . Using system dynamics in maritime economics: An endogenous decision model for shipowners in the dry bulk sector . Maritime Policy and Management , 33 ( 2 ) : 141 – 158 .
  • The Wood algorithm is offered in the Vensim package as a versatile market clearing algorithm. More information can be found at http://www.vensim.com
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  • Engelen , S , Meersman , H and van de voorde , E . 2006 . Using system dynamics in maritime economics: An endogenous decision model for shipowners in the dry bulk sector . Maritime Policy and Management , 33 ( 2 ) : 141 – 158 .
  • The Wood algorithm is offered in the Vensim package as a versatile market clearing algorithm. More information can be found at http://www.vensim.com
  • Gutierrez, G., Quiñónez, J. and Sheblé, G. B., 2005, Market clearing price discovery in a single and double-side auction market mechanisms: Linear programming solution. Conference Proceedings Power Tech 2005 IEEE, 27(30), une, Russia
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  • We can already notice this for the time charter rates in Figure 1 for 2007–2008 freight rates
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  • A comparable but formal analysis of the Nash equilibrium in an asset market game is expounded in: ALOS-FERRER, C. and ANIA, A. B., 2004, The asset market game. Journal of Mathematical Economics, 41(2005), 67–90
  • This is articulated in Figure 1, in which soaring Chinese iron ore imports caused freight rates in 2008 for all sub-markets to rise to record levels. Our model is valid, as even in these volatile markets we can not evidence that excess profits were generated in one ship class vis-à-vis another one
  • Stopford , M . 2008 . Maritime Economics , London : Routledge .
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  • Engelen , S , Meersman , H and van de Voorde , E . 2006 . Using system dynamics in maritime economics: An endogenous decision model for shipowners in the dry bulk sector . Maritime Policy and Management , 33 ( 2 ) : 141 – 158 .
  • Dikos , G , Marcus , HS , Papadatos , MP and Papakonstantiou , V . 2006 . Niver Lines: A system-dynamics approach to tanker freight modelling . Interfaces , 36 ( 4 ) : 326 – 341 .

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