A Study On The Impact Of Government Regulation On The Equilibrium Of Beijing Car-hailing Market

With the development of "Internet Plus",traditional taxi market has appeared a new operation model,car-hailing services.Because of its technology innovation,car-hailing services have introduced new competition in the relatively closed taxi market,which benefits the consumer and has caused positive social benefits.On the other hand,the rapid growth of car-hailing service has affected the traditional taxi driver’s income and increased the amount of motor vehicle,which has already congested the city.Whether it needs to be limited about the amount of car-hailing is a question.For the car-hailing services,the access,price and quantity control about the traditional taxi is useless.Government regulation on the car-hailing service needs to be innovated.For the government,it should as far as possible do not intervene in the mechanism to affect the efficiency of the taxi industry.At the same time,it should solve the social problems caused by market failure.Across to the current policy of car-hailing services,how to deal with the relationship between the government and the market is still a fuzzy issue.Firstly,some local governments did not really understand how to let market play a decisive role in resources allocation.To car-hailing services,government should let market play a fundamental role,as far as possible not intervene.Secondly,some local governments are lacking to recognize how to give full play to the functions of the government.In car-hailing market,because of the problems such as safety and service quality,government has the responsibility of the regulatory.What the government should do is to create favorable regulatory environment for market mechanism,and what the government should not do is to be obsessed with the interior configuration、vehicle performance indicators and vehicle wheelbase,which should be resolved by the market.In this paper,we analyzed the effects of government regulation on car-hailing market equilibrium in Beijing.First,this paper analyzed the relationship and boundary problem between the government and the market in car-sharing market,which on the whole deals with the relationship between government and market in car-hailing market.Second,this paper concretely introduced the current situation of car-hailing market development and government regulation in Beijing.Then,this paper combed the current government regulation policy and preliminary analyzed the impact of government regulation on Beijing car-hailing market.Again,this paper used a model to analyse the car-hailing market equilibrium,which concluded that the existing government regulation policy’s influence on the Beijing car-hailing market equilibrium:Beijing car-hailing supply under the condition of existing policy does not meet the market optimal equilibrium quantity.Finally,based on the above analysis,this paper has given some policy suggestions.For example,implement classified management for car-hailing market;supporting car-hailing platform to implement dynamic pricing;using car-hailing platform’s information advantages to strengthen the supervision.