Encroachment and pricing strategies of shipping companies in the shipping service supply chain with asymmetrical market size
Considering the asymmetry of market size between shipping companies in the shipping service supply chain,by using Stackelberg game theory,a three-stage sequential game model between shipping companies and freight forwarders was established to determine the optimal encroachment and pricing strategies of shipping companies,and the impact of market share on shipping company encroaching decisions and supply chain member pricing decisions was studied. Results show that whether shipping companies encroach or not,the higher mar-ket share always brings more profits to shipping companies;when the market share of the shipping company is high,the substitution degree of transportation services between shipping companies is low,and the encroachment cost is high,the shipping company will gain more profits without encroach-ment;when the shippers have a higher or lower preference for encroaching channel,the encroachment will bring more bene-fits to the shipping company.
shipping service supply chainasymmetric market sharechannel encroachmentgame theory