The impact of a tariff on logistics service strategies in an international e-commerce trade: game theory and agent-based model

ABSTRACT

This paper develops two models to investigate the impact of a tariff on logistics strategies in an international e-commerce trade, where the methods of game theory and agent-based model are utilized. We consider a foreign supplier and a domestic e-tailer. There are two logistics strategies: the supplier undertakes the logistics and the e-tailer shoulders the logistics. First, two strategies are compared under the game theory model. Then, we capture the uncertainties of market demand and tariff. An agent-based model is adopted to further study how the tariff affects the supply chain’s decisions and strategies. Some meaningful results are obtained. (i) The supplier should provide the logistics service when market demand and tariff are certain. (ii) Under demand uncertainty, the supplier and the e-tailer can reach an agreement on logistics strategies when the tariff is small. (iii) When tariff uncertainty is moderate, two players both abandon the logistics intention..

KEYWORDS:

• Tariff
• e-commerce logistics
• international trade
• game theory
• agent-based model

Disclosure statement

No potential conflict of interest was reported by the author(s).

Additional information

Funding

This research was supported in part by: (i) Research fund of University Philosophy and Social Sciences of Jiangsu Province [grant number 2022SJYB0434]; (ii) research fund of Nanjing Institute of Technology [grant number YKJ202120]; (iii) industrial economics institute fund of Nanjing Institute of Technology [grant number JGKC202108]; (iv) innovation fund general project of Nanjing Institute of Technology [grant number CKJB202003]; and (v) Doctor of double innovation of Jiangsu Province [grant number JSSCBS20220719].