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Evolving strategies of e-commerce and express delivery enterprises with public supervision

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  • Zhang, Xuemei
  • Zhou, Gengui
  • Cao, Jian
  • Wu, Anqi

Abstract

This paper considers the e-commerce enterprises as the principal who outsource logistics services to the express delivery firms acting as the agent. The delivery enterprise faced with incomplete information provides either high- or low-quality logistics services, while the e-firm regulates either actively or passively. Using an evolutionary game model, this paper seeks equilibrium strategies of the two parties under public supervision, with impacts of pertinent parameters on strategy selections illuminated. Analytical results indicate that the delivery firms rely mostly on comparative profit between high- and low-quality logistics services to make decisions, while the e-firms consult to monitoring cost rather than regulatory success rates to make selections between active and passive regulation. When public supervision stays at a relatively deficient level, passive supervision is preferred by the e-firm with the increase of consumer complaint rate. Still, it is possible to maintain the benefits of e-commerce corporations as well as enhance logistical performance in evolutionary games with the help of an operative supervision and punishment mechanism. Additional managerial insights are provided for discussion.

Suggested Citation

  • Zhang, Xuemei & Zhou, Gengui & Cao, Jian & Wu, Anqi, 2020. "Evolving strategies of e-commerce and express delivery enterprises with public supervision," Research in Transportation Economics, Elsevier, vol. 80(C).
    • Handle: RePEc:eee:retrec:v:80:y:2020:i:c:s0739885919303373
    DOI: 10.1016/j.retrec.2019.100810
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    Cited by:

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    3. Tang, Yuk Ming & Chau, Ka Yin & Xu, Duo & Liu, Xiaoyun, 2021. "Consumer perceptions to support IoT based smart parcel locker logistics in China," Journal of Retailing and Consumer Services, Elsevier, vol. 62(C).
    4. Guangsheng Zhang & Xiao Wang & Yanling Wang & Jiayun Kang, 2022. "Research on the Resilient Evolutionary Game of Logistics Service Supply Chain with Government Participation," Mathematics, MDPI, vol. 10(4), pages 1-18, February.

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    More about this item

    Keywords

    E-commerce; Logistics; Public supervision; Principal-agent; Evolutionary game;
    All these keywords.

    JEL classification:

    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
    • L24 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Contracting Out; Joint Ventures
    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce

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