Game analysis of price competition between Hong Kong and Shenzhen container port based on bertrand model

Price competition, as a traditional competition mean which has been extensively used by container ports, plays an important role in port competition. Positive price competition can improve the port productivity. However if the price competition deteriorates a vicious competition, the price competition will not take effect; moreover both of the two competitors may be caused destruction. Therefore, through analyzing the price competition model of Hong Kong and Shenzhen container ports, integrating with Bertrand Game model, this paper will provide some practicable solutions to price vicious competition, such as coopetition strategy, service differentiation strategy and cost-leadership strategy. The innovation of this paper is that the economics Bertrand game model is used to solve practical problems in the port price competition.