A Joint Distribution Pricing Model of Express Enterprises Based on Dynamic Game Theory

Hongqiang Fan, Yichen Sun, Lifen Yun () and Runfeng Yu
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Hongqiang Fan: School of Modern Post, Beijing University of Posts and Telecommunications, Beijing 100876, China
Yichen Sun: School of Traffic and Transportation, Beijing Jiaotong University, Beijing 100044, China
Lifen Yun: School of Traffic and Transportation, Beijing Jiaotong University, Beijing 100044, China
Runfeng Yu: School of Traffic and Transportation, Beijing Jiaotong University, Beijing 100044, China

Mathematics, 2023, vol. 11, issue 19, 1-17

Abstract: With the development of sharing economy, a joint distribution mode has been increasingly adopted as the preferred cooperation mode of third-party logistics enterprises to achieve the efficient, resource-saving, and profit-optimal business goals of enterprises. In the joint distribution mode, the distribution price is one of key factors that influences the operation of the joint distribution. Thus, to acquire the optimal pricing for the logistics enterprises, we establish a pricing model based on dynamic game theory for a joint distribution system including one joint distribution company and two express enterprises. In the proposed model, two dimensions of games exist simultaneously, including the game between express competitors and the game between express and distribution enterprises. The multidimensional game leads to more complex system characteristics. Through the stability analysis, we find the Nash equilibrium point and its stability conditions. Numerical simulations are conducted to investigate the complex dynamical behaviors of the game model, such as the system stability region, the bifurcation diagram, the largest Lyapunov exponent, strange attractors, etc. The simulation results indicate that different price adjustment speeds and ranges have a significant impact on the system stability and the profits of all participants in the game. The parameter adjustment control can well dominate the chaotic behaviors of the system. Enterprises should make pricing decisions based on their market positions to promote the continuous and stable development of the operation mode of the multi-agent joint sharing distribution center.

Keywords: joint distribution; service pricing; dynamic game; chaotic characteristics (search for similar items in EconPapers)
JEL-codes: C (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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