Market Entry of Duopoly Wharf Enterprises at Container Port with Network Externality

Abstract

This article in view of Sinotrans Guangdong LTD in face of whether enters Guangzhou Huangpu new port and what policy-making questions it will meet, through constructing Cournot model and Stackelberg model under network externalities, generally study on container port duopoly wharf enterprises' market entry's questions. The findings indicate that, through affecting the wharf enterprise's market share and the service price, network externalities finally affect wharf enterprise's profit; the classical duopoly game's first-mover advantage appears only when network externalities are quite weak. However, under the different market mode of entry, the bilateral market share and the price are not only decided by the strength of self-network externalities, but also decided by competitors' strength of network externalities.