Game Analysis on Enterprise Behavior among Road Freight Transport Industry in China

Currently, price wars between road freight transport enterprises are intense, the road freight transport industry has been developing very slowly in China. Faced the fact that competition within road freight transport industry is getting fierce in China, this essay is based on the perspective of game theory, adopting the Bertrand oligopoly model to analyze the price behavior among road freight transport enterprises. Game theory (pure strategic Nash equilibrium) has been used to analyze the relation between price of transport service and service quality within road freight transport industry. It is pointed out that the root of the slow development of road freight transport industry in China is that the price war between transport enterprises is unhealthy; transport service prices severely deviate from transport costs.