The Price Decision of Order With Third-Prty Logistics Based on Incomplete Information Game

FangTong LIU


As the price is always a prime factor taken into consideration when a 3PL provides logistics service. With increasingly cases of logistics service providing to retailers rather than manufacturers nowadays, quantity may be not as an important factor. For retailers always have certain amounts of goods, they can hardly expand the scale at their will to obtain a quantity discount. To logistics companies, most of them are medium-sized and small enterprises, under limitations of its fields and capability. They can neither provide enough warehousing area for retailers. This paper builds the price decision model in expectation of utility obtaining by service contract instead of the whole revenueof pricemultiplying quantity, and would be more suitable for 3PL to apply when working for a retailer. Besides, this paper sets the opponent’s acceptable price as uncertain information, which is more realistic than the usual complete and perfect information assumption. Based on the incomplete information game and introducing variables of service capability and service level, this paper will give the best decision of pricing order and a specific amount in quotingthe price stage. Further discussion will quantify the benefits of pricing first and factors affect the benefits which aremore conducive to the third -party logisticsenterprises to provide services for external companies.


Pricing order; Incompleteinformation game; Quoting decision

Full Text:



Bai, Y. H., & Zhang, Y. (2011). Supply and demand analysis based on game theory of third party logistics enterprise pricing mechanism. Price Theory and the Practice, 4, 64-67.

Li, J., & Xie, T. S. (2010). The pricing method of third party logistics enterprise. China: Science Press.

Liu, W., Wei, M. X., & Zhou, H. (2007).Game analysis of logistics service pricing. Journal of Logistics Science, 30(1), 64-67.

Rafiq, M., Kand, H., & Jaafar, S. (2008). Measuring customers’ perceptions of logistics service quality of 9.3PL service providers. Journal of Business Logistics, 28(2), 159-175

Selviaridis, K., & Spring, M. (2009).Third party logistics: A literature review and research agenda. International Journal of Logistics Management, 18(1), 125-150

Tao, B. Y., & Zhao, H. X. (2004). Research onprice decision of the third party logistic. Journal of Commercial Economy, (4), 11-13.

Xu, L., & Qian, G. (2007). Bertrand model analysis of “the of price war” phenomenon. Journal of Management Science, 2.

Xue, H., & Tian, D. G. (2005). Pricing strategy of the third party logistics service. Journal of Enterprise Economy, 7(299), 63-64.

Zhang, W. Y. (2012, April). Game theory and information economic. China: Gezhi Press.

Zhang, D. Z., & Xie, R. H. (2006).The third party logistics optimal pricing model based on sensitivity analysis. Journal of China Forestry College, 26(1), 60-65.



  • There are currently no refbacks.

Copyright (c)

Share us to:   


  • How to do online submission to another Journal?
  • If you have already registered in Journal A, then how can you submit another article to Journal B? It takes two steps to make it happen:

1. Register yourself in Journal B as an Author

  • Find the journal you want to submit to in CATEGORIES, click on “VIEW JOURNAL”, “Online Submissions”, “GO TO LOGIN” and “Edit My Profile”. Check “Author” on the “Edit Profile” page, then “Save”.

2. Submission

  • Go to “User Home”, and click on “Author” under the name of Journal B. You may start a New Submission by clicking on “CLICK HERE”.

We only use three mailboxes as follows to deal with issues about paper acceptance, payment and submission of electronic versions of our journals to databases:;;

 Articles published in Management Science and Engineering are licensed under Creative Commons Attribution 4.0 (CC-BY).


Address:1020 Bouvier Street, Suite 400, Quebec City, Quebec, G2K 0K9, Canada.

Telephone: 1-514-558 6138
Http:// Http://

Copyright © 2010 Canadian Research & Development Centre of Sciences and Cultures