Comparative Research On Railway Commonweal Transportation Subsidy Mechanism-Based On The Reach Method Of Game Theory

Railway transportation is a major issue related to the people’s livelihood. In consideration of its public benefits and great positive externalities, we cannot afford to ignore the development of railway transportation and the perfection of institutional construction. To build railway commonweal transportation subsidy mechanism is a realistic problem that should be solved urgently in China.Beginning with the theory of public goods and externality theory, this paper gives the concept and scope of railway commonweal transportation. Then, it discusses the necessity of establishing railway commonweal transportation subsidy mechanism:It not only facilitates internalization of external elements, but also adjusts the contorted market price. As a result, railway company is motivated and the competitiveness of the railway transportation is increased.Next, through analyzing different railway commonweal transportation subsidy mechanisms of China, Britain, France, America and Norway, this paper has obtained five railway commonweal transportation subsidy schemes:cross-subsidy+loss subsidy scheme, franchise+the lowest subsidy bid, fixed subsidy for each unit of freight contract, land subsidy scheme and performance subsidy contract.Further, this paper observes the benefits associated different situations directly, by analyzing players’best responses under different institutional arrangements from the perspective of game theory. On the basis of game analysis, the comparative comparison of five kinds of railway commonweal transportation subsidy mechanisms is presented, from the efficiency, fairness and transaction’s angle.At last, based on our own national conditions, this paper analyses the applicability of five railway commonweal transportation subsidy schemes in China, and present recommendations:cross-subsidy+loss subsidy scheme has the lowest efficiency, thus, it must be reformed as soon as possible; In the short term, land subsidy scheme and performance subsidy contract are suitable for China; In the medium term, the most appropriate subsidy mechanism should be fixed subsidy for each unit of freight contract; In the long term, the competition should be introduced into the railway transport industry and the structure of railway transportation market should be adjusted, then, the best subsidy mechanism would be franchise+the lowest subsidy bid.