A Study Of The Internal Transaction Price Forming Mechanism For Urban Rail Transit Operating Company

Urban Rail Transit (URT hereafter) is an important kind of infrastructure, and it plays an important role in urban comprehensive traffic and transportation system. Under planned economy, the government and its state-own-enterprises (SOEs) monopolized the URT industry, and they controlled and managed the whole industry. This traditional type of operation model could not raise money needed for URT development from multi-channels, but also it brought a lack of efficiency for the URT operators. And it no longer fits in with the needs of the rapid development of URT industry in new era. Therefore, introducing market mechanism in the fields of investment and operation to broaden the financial channels and improve the operational efficiencies become a vital content in reform practice and theoretical research of URT industry.In this thesis, the author holds that the market reform of URT industry includes two perspectives, one is to introduce multiple operators to the market and gradually form a competitive environment on the premise of scale economy and competition efficiency. The other is to build up an internal transaction market for the companies of URT and encourage them to reduce costs and improve their efficiencies after introducing market mechanism for them.Based on above, this thesis takes the price forming mechanism for internal transaction of URT operating companies as the object of study in the context of internal market reform of URT. By adopting the theories and methodologies in information economics, the author firstly analyzed the incentives and significance of internal market reform of URT operating companies from the perspectives of power division, internal market and so on. Then the author introduced the thoughts of regulation to internal transaction pricing according to the characteristics of internal market transaction of URT companies, as well, by referring to the theories and experience in regulation pricing for monopoly industries in foreign countries, the author proposed that URT companies should adopt a cost-based incentive regulation pricing mechanism for internal transactions, furthermore, the author systematically discussed the related theories, methodologies and models in regulation pricing studies. Finally, the author took Beijing Subway Operation Company as a real case and expounded the basis and safeguard for smooth running of the methods, models and pricing mechanisms adopted by this kind of cost-based incentive regulation pricing mechanism.In conclusion, the author holds that the setup and effective implementation of the price forming mechanism for internal transactions of URT operating companies can not only spur all departments and units in these URT operating companies to lower down their costs, improve their working efficiencies and enhance their overall competitiveness, but also it can help these companies to lay solid foundations for the transformation of an external specialized maintenance market for subways, which is an important innovation of market reform of URT industry. Furthermore, adopting incentive regulation pricing within URT companies is of certain theoretical value and practical significance to push forward the market reform of URT industry.