Pricing and coordination research for tpl based on different logistics service level

Abstract

In this paper, we consider a situation that different logistics service level can influence the market demand, TPL service and the pricing decision models are constructed by using game theory. The equilibrium prices, service levels under different systematic states of two TPL enterprises are given. And the conclusion of this paper shows that the strong ability of logistics service does not necessarily have a competitive advantage when under the separate decision, pricing equilibrium under joint decisions not only make both sides get more income, but is also advantageous to raise the level of service. The conclusion also shows that revenue sharing is a good coordination mechanism for logistics service union, and its revenue sharing percentage depends on the negotiation skills of both sides. © Springer-Verlag Berlin Heidelberg 2013.