Brito, Dagobert L.: Congestion of the Turkish Straits: A Market Alternative
World Conference Econometric Society, 2000, Seattle

Dagobert L. Brito, Rice University
Michael D. Intriligator, University of California at Los Angeles
Congestion of the Turkish Straits: A Market Alternative
Session: C-5-6  Sunday 13 August 2000  by Brito, Dagobert L.
The paper addresses possible congestion of the Bosporus that could result from the 1936 Montreux Convention that gives freedom of transit and navigation in the Turkish Straits. While the Straits are not congested at present for general cargo, we can expect congestion within seven to fourteen years and even sooner for tankers because of safety considerations. The carrying capacity of the Straits can be improved and possible future congestion avoided if a two-part tariff is used to ration general cargo while an auction is used to allocate tanker slots. Key words: auction, Bosporus, congestion, tanker, Turkish Straits, two-part tariff

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