The LNG market is experiencing a tremendous growth. It is expected that competition will increasingly develop especially in the shipping segment of the LNG chain, which at least in its first phases will have the characteristics of an oligopolistic market. The LNG shipping market is appropriate for the application of a (non-cooperative) game theoretic framework. This paper reviews the basic insights that game theory can offer to the analysis of the LNG shipping market and presents relevant game theoretic structures regarding competition and strategic investments. Game theory is a useful supplement to the intuition of a market player in the LNG shipping business, as it helps in identifying right strategies given certain conditions.
|Number of pages||23|
|Publication status||Published - 2007|
|Event||International Association of Maritime Economists conference (IAME 2007): “Challenges and Trends in Shipping” - Athens, Greece|
Duration: 4 Jul 2007 → 6 Jul 2007
|Conference||International Association of Maritime Economists conference (IAME 2007)|
|Period||04/07/2007 → 06/07/2007|
- LNG shipping
- Competition & Strategic investments
- Game theory
Gkonis, K. G., & Psaraftis, H. N. (2007). Investment Rules and Competition Patterns in LNG Shipping: A Game Theory Approach. Paper presented at International Association of Maritime Economists conference (IAME 2007), Athens, Greece.