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A Cooperative Mechanism Between China Post and Private Express Firm for Remote Area Express Market

Author

Listed:
  • Yang Ling

    (School of Management, University of Science and Technology of China, Hefei230026, China)

  • Zhang Juzhi

    (School of Management, University of Science and Technology of China, Hefei230026, China)

Abstract

Focusing on the universal express service market, this paper introduces a cooperative mechanism between China Post and private express companies. To investigate whether this cooperative mechanism works, the authors develop a pricing model for the express service market in three different scenarios, i.e., China Post monopolizes the remote area market, competes with a private express company, and cooperatively provides service to the private company. Comparison between the three different scenarios shows that the proposed cooperative mechanism will benefit both firms. The authors also introduce a revenue sharing contract to coordinate the system, and investigate the optimal regulation price.

Suggested Citation

  • Yang Ling & Zhang Juzhi, 2015. "A Cooperative Mechanism Between China Post and Private Express Firm for Remote Area Express Market," Journal of Systems Science and Information, De Gruyter, vol. 3(3), pages 234-247, June.
    • Handle: RePEc:bpj:jossai:v:3:y:2015:i:3:p:234-247:n:3
    DOI: 10.1515/JSSI-2015-0234
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    References listed on IDEAS

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    3. Philipp B. Schuster, 2013. "One for all and all for one: privatization and Universal Service provision in the postal sector," Applied Economics, Taylor & Francis Journals, vol. 45(26), pages 3667-3682, September.
    4. Naolah Pitia & Gurmeet Singh & Rafia Naz, 2013. "Postal Service Reforms in Solomon Islands of the South Pacific: Evaluating Consequences for Public Service Delivery and Customer Satisfaction," International Journal of Public Administration, Taylor & Francis Journals, vol. 36(12), pages 821-830.
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