Challenges and Reconstruction of Competition Policy in Taxi Market Resulting from APP

Abstract

The majority of regulatory authorities in the world prohibit free access to taxi market and free bargaining for taxi fares between drivers and passengers. This kind of policy restricting competition results from the game between interests groups, but also matches with significant information asymmetry in taxi market. APP remodels information transmission and trade competition mechanisms in taxi market, overturns the legitimacy foundation of restricting competition policy, and makes taxi market policy pattern with global convergence fall apart. A triangle analytical framework, so called group games-institutional environment-economic thoughts, as the important means for studying the transition of competition policy, can be used to reveal the general reasons for the transition of market regulation policy between competition openness and competition ban, and indicates that taxi markets in different law domains will achieve competition liberalization asynchronously and converge constantly to regulation policy encouraging competition.