Switching costs and geographic price discrimination in the ship management industry
by Antonis A. Michis
International Journal of Shipping and Transport Logistics (IJSTL), Vol. 17, No. 4, 2023

Abstract: The ship management industry operates on a global scale and is often associated with business practices such as repeated short-term contracts, long-term customer relationships, and international variation in pricing agreements. Using a unique dataset and a semi-parametric hedonic model specification, we investigated the determinants of ship management fees with particular emphasis on the identification of price mark-ups associated with switching costs. Our results suggest: 1) the existence of a 'lo-hi' pricing pattern that is consistent with theoretical studies of switching costs; 2) the exercise of geographic price discrimination by ship management firms. Ship management fees were also found to be influenced by a set of vessel, company, and management service characteristics.

Online publication date: Mon, 15-Jan-2024

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Shipping and Transport Logistics (IJSTL):
Login with your Inderscience username and password:

Username:        Password:          Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com