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Academic Journal of Business & Management, 2023, 5(24); doi: 10.25236/AJBM.2023.052423.

Selection of Competition and Cooperation Strategies for China Railway Express Considerding Routes Consolidation

Author(s)

Zhang Mengmeng1, Yang Xi2

Corresponding Author:
Zhang Mengmeng
Affiliation(s)

1School of Economics and Management, Chongqing Jiaotong University, Chongqing, China, 400074

2School of Economics and Management, Southwest University of Science and Technology, Mianyang, China, 621010

Abstract

The competition and cooperation between domestic freight platform companies of China Europe Express is a hot issue at present. By taken into consideration that the competition among multiple platform companies is influenced by factors such as price and geographical location, a game model based on the Salop market structure was constructed combining with routes consolidation strategies for different scenarios such as whether platform companies cooperate or not, and whether routes consolidation occur during cooperation. The impact of different competition and cooperation strategies on platform companies and social welfare was studied. The research results indicate that cooperation can alleviate price competition among platform companies in the market and improve profit levels. If platform companies consolidate routes during cooperation, the social welfare level is the highest; If the routes are not consolidated during cooperation, social welfare will decrease, and the market price will be the highest at this time. This research can provide theoretical basis for the cooperation between China Europe Express related platform companies and the selection of route consolidation strategies, and provide support for promoting the market-oriented development of China Railway Express.

Keywords

railway transportation; competition and cooperation; route consolidation; Salop model; China Railway Express

Cite This Paper

Zhang Mengmeng, Yang Xi. Selection of Competition and Cooperation Strategies for China Railway Express Considerding Routes Consolidation. Academic Journal of Business & Management (2023) Vol. 5, Issue 24: 160-167. https://doi.org/10.25236/AJBM.2023.052423.

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