Regulation strategies of ride-hailing market in China: an evolutionary game theoretic perspective

Li-cai Lei, Shang Gao () and En-yu Zeng
Additional contact information
Li-cai Lei: Xiangtan University
Shang Gao: Nanjing University
En-yu Zeng: Xiangtan University

Electronic Commerce Research, 2020, vol. 20, issue 3, No 3, 535-563

Abstract: Abstract With the popularity of the sharing economy, ride-hailing services have greatly affected people’s travel and become a new travel mode for urban residents. However, the lack of effective industry regulation has resulted in serious operational problems and growing difficulties in the furthering development of ride-hailing services in China. Therefore, it is necessary to study the regulation strategies of multiple subjects involved in ride-hailing industry. Based on evolutionary game theory, the paper establishes the tripartite evolution game model about regulation strategies of ride-hailing industry. The theoretical research and simulation results show that the evolutionarily stable strategy of a single subject (Transportation Network Company, driver or passenger) is affected by the strategies of other two subjects together. Moreover, when making the decision, the Transportation Network Companies (TNCs) need to consider the difference between benefits and costs, user scale, incentives and penalties from the government. Drivers need to consider their benefits and costs, travel user scale and penalties from the government and the TNCs. Besides, the benefits and costs, and the harmony of ride-hailing industry need to be considered for passengers. Potential policy implications are proposed.

Keywords: Ride-hailing services; Transportation network companies; Regulation strategies; Evolutionary game theory; New travel mode (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
http://link.springer.com/10.1007/s10660-020-09412-5 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:elcore:v:20:y:2020:i:3:d:10.1007_s10660-020-09412-5

Ordering information: This journal article can be ordered from
http://www.springer.com/journal/10660

DOI: 10.1007/s10660-020-09412-5

Access Statistics for this article

Electronic Commerce Research is currently edited by James Westland

More articles in Electronic Commerce Research from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().