387 / 2024-04-24 21:29:28

Research on Delivery Contract of E-Commerce Based on the MNL Choice Model

E-commerce,game theory,MNL choice model,express delivery service,contract design

With the development of online retail industry, the cooperation between online retailers and express companies is increasingly close. This paper studies a delivery contract based on the MNL choice model between an online retailer and two express companies. The different service levels of express companies will affect the product demand of online retailers. In terms of contracts, express companies will offer different discounts for retailers to choose from. For retailers, the number of orders that different express companies cooperate with will affect the unit price of express delivery, thus affecting their profits. A delivery contract model based on the MNL choice model between the online retailer and the express companies is designed to give decision-making suggestions for managers. Managerial enlightenments are extracted by analyzing the decision-making process of the game players.