Abstract: The overflow benefits and cross-border relationship of public products and the growth of public demands have made it necessary and possible for local governments to cooperate collaboratively. As a regional community belonging to the same province， there exist some problems impacting the cooperation in Shandong Peninsula Agglomeration such as shortage of spontaneous cooperation， disorderly competition， lack of in-depth interaction and deficiency in long-term cooperation mechanism. These are mainly due to prisoners dilemma and hitchhiking psychology， narrow local protectionism， different levels of economic development and lack of institutional security mechanism. In order to promote the realization of public service equalization， local governments should change the mindset of adversarial competition， adopt the mode of cooperative competition and make clear of the role of government in the process of supplying public services.

Key words: public service, local governments’ cooperation, Shandong peninsula agglomeration