On measuring competition in the ship management industry

Abstract We propose a revenue test model for measuring the level of competition in the ship management industry. In addition to revenues, the model incorporates information on the structure of expenditures required in ship management operations to estimate the Panzar–Rosse H -statistic emphasizing crew, technical and administrative expenses. Estimation results using data for Cyprus’s ship management industry for the period 2011–2023, suggest a market structure compatible with monopolistic competition. Furthermore, crew expenses provided the highest input factor elasticity and vessel portfolio size the most important revenue driver in the estimation procedure.