Abstract
ABSTRACT A number of innovative business models involve public infrastructure service, such as shared cars. Considering the regulating role of government in these industries, it is important to know what governmental features influence the development of such models. With data of 102 cities in China, we find that government service quality is positively associated with the speed with which car sharing companies are established in a city, and cities with south-born mayors have higher service quality than those with north-born mayors. The mayor’s region of birth has an indirect effect on the speed with which car sharing is established.
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