Abstract: Supposing both operation ability and effort level are primary information to a third party logistics service provider, here was established a cooperative game model between a third party logistics buyer (the principal)and the supplier(the agent).Furthermore,we applied maximum principle to our analysis and obtained both the players’ cooperative strategies.Finally,on the assumption that the supplier is risk-neutral the risk cost,incentive cost and total agency cost were analyzed respectively.

Key words: third-party logistics, outsourcing, asymmetric information, cooperative game, cost