Price Regulation For High Way In China Based On The Perspective Of The Stakeholder Analysis

The Chinese economic has been growing fiercely after the Reform and Opening Up policies.As economic linkages among districts had become stronger, the demand of high-grade highwaywas getting stronger. Therefore, the government had strengthened investment in highwayconstruction in order to satisfied people’s demand for road. Huge fund was needed forinvestment in highway construction, but finances of Chinese government could not afford it inthe early stage of economic development. To solve the problem of highway development becauseof the funding gap, the state issued a "road loans, loan fees" policy. After three decades, nationalhighway development has made remarkable achievements and the beginning of the current sizeof the highway network. The fee policy had made an indelible contribution. However, with therapid development of highways, toll rates have gradually become the focus of attention.Reasonable price is necessary to meet road toll operators, but also cannot harm the interests ofusers in order to be better for the social benefits of the highway. So it requires the government toimpose price regulation on the highway. Because of the reform of diversification of investmentand financing, market mechanisms was adopt in the highway management, the governmentutilized the franchise system and business to form a public-private partnership to providehighway products and services together. So price regulation involves the interests of the gamebetween the multi-stakeholders. As the main participants are local department of transportation,franchise businesses and road users the price of highway should be an equilibrium price whichincluded the interest among local government, businesses and road users. Reasonable pricingmodel should give full consideration to interests of factors of governments, businesses and roadusers, but current pricing is deficient which can not reflect the relationship between stakeholders.Therefore, in the thesis, we build an equilibrium pricing which balanced the tripartite interests,from the perspective of highway stakeholders.