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Under e-business environment, the evolutionary process of channel selection of service provider and customer is researched by evolutionary game. Firstly, the evolutionary game model between the supply and the demand parties of service is built. Then the channel selection to the traditional channel and the dual-channel is analyzed. In addition, the equilibrium points are obtained. Finally, equilibrium points are analyzed to obtain evolutionary stable strategy. Research results are as follows: yield gap between network channel and traditional channel of service provider and consumer utility in both channels have influence on evolutionary stable strategy. Service provider and customers ought to take these factors into consideration when they select channels.

Channel Selection Strategy of the Supply and the Demand of Service Based on Evolutionary Game