A non-structural test for competition in the container liner shipping industry
In: Maritime Policy and Management. Taylor & Francis: London. ISSN 0308-8839; e-ISSN 1464-5254, meer
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| Abstract |
This study examines the competitive conditions of the Containerized Liner Shipping Industry (CLSI). The degree of competition prevailing in this industry will be assessed using the Panzar and Rosse H-statistic. The properties of this non-structural methodology (e.g. using firm level data, robustness in small samples, no need to specify a relevant market, etc.) make it an excellent framework for assessing the degree of competition in the CLSI. The empirical specifications are based on an unbalanced panel of data regarding a sample of 18 major liner operators covering the period 1999 to 2008. A significantly positive unscaled value of the H-statistic has been found. This means that the hypothesis can be rejected that the CLSI market structure corresponds to a neoclassical monopoly, a collusive oligopoly or a conjectural variations short-run oligopoly. |
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