Bertrand Game Model for the Port Logistics Alliance

There has been a furious price competition among port logistics enterprises in order to secure the cargo zealously. Therefore, how to prevent destructive price competition from draining all of the profits as well as which strategy should be applied have become the primary center of attention in the port industry. Bertrand model is just a effective means of solving in the price war. It was employed to verify the benefits of establishing port logistics enterprises alliance by way of the practice. Meanwhile, this paper discussed the importance of logistics alliance as a significant measure to improve the decision-making efficiency of the port, analyzed the necessity of establishing such alliances and proposed development strategies for port logistics alliances competing in terms of price.