Abstract: The development of rural logistics is an important engine to promote the ′industrial products to the countryside′ and ′agricultural products to the city′ The advantage of China Post is its numerous outlets, and the advantage of private logistics enterprises lies in lots of orders. As a result, how the government promotes cooperation between the two sides and their cooperative approaches are the focus of rural logistics development The incentive model is constructed in which logistics enterprises are the entrusting party and China Post is the agent party through using principal-agent theory, and under the condition of multi-participants, whether different logistics enterprises need to cooperate with each other, China Post′s optimal strategy and the key factors that affect earnings of every parties are analyzed At the same time, impact of government subsidy strategy on cooperation is explored

Key words:  rural logistics, government subsidy, principal-agent theory, incentive mechanism