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It is studied that the competition and vertical cooperation between one ocean carrier and two freight forwarders. In addition, two freight forwarders have different market positions. We observe that the ocean carrier or freight forwarders canvass for cargos, which influences the equilibrium profits and channel structures in Stackelberg game. We show the integration and sharing between the ocean carrier and freight forwarders. Comparing parties' profits with profit sharing or integration depended on network externality and product differentiation, we find that the Nash equilibrium is the ocean carrier canvasses for cargos and the integration or sharing. Copyright © 2019 by Science Press.
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