Investment Rules and Competition Patterns in LNG Shipping: A Game Theory Approach

Konstantinos G. Gkonis, Harilaos N. Psaraftis

Research output: Contribution to conferencePaperResearchpeer-review

Abstract

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.
Original languageEnglish
Publication date2007
Number of pages23
Publication statusPublished - 2007
Externally publishedYes
EventInternational Association of Maritime Economists conference (IAME 2007): “Challenges and Trends in Shipping” - Athens, Greece
Duration: 4 Jul 20076 Jul 2007

Conference

ConferenceInternational Association of Maritime Economists conference (IAME 2007)
CountryGreece
CityAthens
Period04/07/200706/07/2007

Keywords

  • LNG shipping
  • Competition & Strategic investments
  • Game theory

Cite this

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.