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Research on the Problem of Quantitative Restriction to Taxi Operation

Author: LiHan
Tutor: RongChaoHe
School: Beijing Jiaotong University
Course: Industrial Economics
Keywords: Taxi Quantity Control Perfect Competition Calling a Cab
CLC: F572
Type: Master's thesis
Year: 2011
Downloads: 143
Quote: 0
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Abstract


Nowadays, taxi is not only a very important but also very common kind of vehicle. In the current circumstance of market economy and prevail deregulation, it’s hard to find a controlled industry like taxi which attracts the most attention and discussion. Since 1970s, the wave of deregulation of many industries has turned up all over the world, including taxi industry which in many countries went through the progress of deregulation and reorganization. However, this industry in most cities is still under control of government finally, from the form of entry control and price control to quality control and even the most severe quantity control. The amount of taxi in many cities didn’t increase even by one in the past decades, which apparently is unable to meet the need of consumers and leads to high management cost, abnormal industrial profit and fierce competition. All of these make the mass disturbances of taxi industry accrue frequently.This paper starts from this industrial phenomena, analyzes the current situation of Chinese taxi industry development, and points out that the final reason of industrial disturbance is quantity control. At the same time, the method to stop control on Chinese taxi industry is suggested in this paper from the successful reform experience abroad.Six chapters are contained is involved in this paper. Chapter One reviews and summarizes the previous results, and gives out the main researching content of this paper. Chapter Two analyzes the economic characters of taxi industry, and puts forward the conclusion that taxi industry is close to a perfect competition industry. On basis of this, it’s unreasonable to put it under control. Chapter Three analyzes Chinese taxi industry overall, and systematically reveals the whole progress of its beginning and development. The most two representative kinds of taxi management model in china are explained in this chapter, and leads to the conclusion that quantity control is the key problem of Chinese taxi industry. Chapter Four discusses the origin of the policy of quantity control in taxi industry referring to foreign examples and reveals the reasons and the severe consequence of its rapid development. Chapter Five introduces foreign taxi industrial situation and the method to stop quantity control through calling a cab. The last chapter, under the condition of considering Chinese practical situation, gives out suggestions and methods to deregulate the quantity control of taxi industry.

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CLC: > Economic > Transportation and economic > Urban transport economy > China's urban transportation economy
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