Participants Mixed Strategy in Logistics Finance based on Game Theory

The function of logistics finance is the cooperation among lenders (banks), third-party intermediaries (logistics companies), and borrowers (SMEs, which means small to medium-sized enterprises). To develop logistics finance, this paper discusses the behavior of these three parties. The inventory pledge loan means the SME obtains loan from a bank with its inventories or other movables as collaterals, and the logistics company take the role to assess the collaterals and keep the collaterals with due care. With the cooperation of these three parties, logistics-company and SME would make the decision whether they will act in collusion to overestimate the value of collateral, the bank would decide whether it should supervise, their behaviors are discussed with Game Theory in the study. The result shows that there is no pure strategy Nash equilibrium, but there is a mixed strategy Nash equilibrium in this business. In other words the logistics-company and the SME will act in collusion with a specified probability, and the bank will also choose to supervise with another specified probability. Through Nash balance analysis of the mixed measures between bank and the interest groups composed by logistics-company and SME, an expectancy profits of the two are calculated, thus achieving the dynamic measures for self-gains of both parties.