Dynamic Game Analysis on Logistic Service in China

Faced the fact that competition within logistic industry is getting fierce in China, this essay is based on game theory (pure strategic Nash equilibrium & admixture strategic Nash equilibrium) to analyze the relation between price of transport service and service quality within road freight transport industry. It is pointed out that making different pricing policies due to different service qualities is not only profitable for road freight transport enterprises, but also beneficial to the overall improvement of road freight transport service quality. It is also found out that different road freight transport service prices reflect the positive correlation between road freight transport service price and road freight transport service quality.