The Economic Analysis Of The Regulation On Public Taxis

This article deals with government regulation on public taxis, including market entry, price policy, equipment requirement and etc. In analysis of the actuality, cause and advantages and disadvantages of government regulation on taxis. The author concluded that actions by government during the change into from plan economic to market economic are still stronly limited by the thinging mode of the former time. The excessive and impropriate government regulations endamper the market from playing its effective role of self adaption. So government has to set more regulations to solve the problems caused by regulations, which is made a bad circolation in consequence. To solve the problem, government should loosen the regulation of the taxi market. Market should play its either on taxi price ,type, cole or other equipment. Government's role is just suppliment. Although market entry is a necessary mode, government should make market play its role fully by offictive technology means when making regulation modes. Loosening and passengers,benefits the active progress of china's taxi market. This article has some creativities on free entry by payful exchange of ownership free negotiation on taxi price, payflil sole adoption of taxi color.