Research On Government Regulation Of Taxi Industry In China

Information asymmetry,negative externalities and other factors led to the failure of the market,so the government need to regulate a series of socio-economic activities to make up for market failure.However,due to the ineffective implementation of the regulation,interest groups' rent-seeking,and the market's own changes and other reasons,government regulation will fail.The in-depth development of "Internet+"has promoted the technological progress and organizational changes in all areas of the economy,this change also adds difficulty to regulatory activities.The government regulates the taxi,mainly using access,price,quantity and quality regulation.With the popularity of mobile Internet technology,internet private hire vehicles gradually rise,and breaking the taxi industry access barriers,changing the market relationship of supply and demand,while the dynamic adjustment of freight,passengers can also post evaluation feedback.This paper summarizes the disadvantages of the traditional taxi industry,the current situation of the regulation and the development of the internet private hire vehicles,and compares the two models,then summed up that there is imbalance between supply and demand,low quality of service,unlicensed cab flooding and other regulatory failure in the traditional taxi industry,internet private hire vehicles improve the information asymmetry,passenger travel,traditional taxi business model,driver income distribution and promote the orderly competition,but there are some possible negative impact and conflict.Its appearance also changes the direction of government regulation:First,quantitative regulation and price regulation are gradually relaxed,encourage the taxi industry to use innovative technology to complete the reform and upgrading;Second,put the internet private hire vehicles into the institutional framework,to explore its standardized management,platform management model is the mainstream.In this model,the platform will directly regulate internet private hire vehicles,the government is mainly responsible for designing the mechanism to motivate the object.Based on the premise that passengers are primarily affected by price and quality,this paper using the method of game theory to analyze the market results of the government's adoption of the access and price regulation of the taxi industry without the internet private hire vehicles,and the market results of the price regulation of the traditional taxi after the entry of the internet private hire vehicles,and the market results when relax the price regulation of the entire taxi industry but take quality regulation,finally conclude that the last regulation strategy is the best.Based on these analyzes,it analyzes and evaluates the current regulation reform of taxi industry,and thinks that the overallmarket orientation is right,but there are still some problems,like relaxation of the price and quantity regulation is not enough,the access threshold of internet private hire vehicles is too strict and so on.In addition,there are multiple contradictions:the administrative licensing system of internet private hire vehicles and decentralization,strict regulation of internet private hire vehicles and encouragement of innovation,management responsibilities between government and platform are unclear,the state system is determined by top-level and decision-making localization,geographical division and the geographical integration of the Internet and so on.Finally,make some suggestionsbased on the above conclusions and foreign internet private hire vehiclesregulation experience:create the new regulatory model,enacted specific laws and regulations,to further deregulation,lower barriers to entry,promote the differentiation of business and industry upgrading and so on,that is,the government can decentralization,create a good market environment,establish a management system which can distinguish between old and new patterns,speed up the construction of industry mixed regulation.