Analysis of port pricing based on circle model

Based on the circle model, three models of port pricing strategy are established by using game theory. The results show that the two ports will choose their best service quality when they both choose the single price strategy or the differential price strategy. The Nash equilibrium of the whole industry will develop towards higher service quality. Moreover, when ports implement differential pricing, the price for consumers in indirect hinterland will be the unit cost. When the service quality is the same, the two ports will choose the single price strategy. The service quality, quality cost coefficient and waiting time coefficient decide whether to form a combined port charging the unified price. But when the service quality is different, the two ports will consider the service quality, quality cost coefficient and waiting time coefficient to decide the pricing strategy.