In big cities like Beijing, Shanghai and Guangzhou, trying to flag down a taxi during the morning and afternoon rush hours is a frustrating experience - passengers have to wait a long time to get one. However, if they...In big cities like Beijing, Shanghai and Guangzhou, trying to flag down a taxi during the morning and afternoon rush hours is a frustrating experience - passengers have to wait a long time to get one. However, if they use a tailored car service app on their smartphone, a car will materialize by their side within minutes. Though a little more expensive than taxis, the service is much better and so are the cars. Tailored car service apps like Kuaidi Zhuanche and Yihao Zhuanche have developed quickly in recent years.展开更多
Chauffeured car service(CCS) has developed rapidly in recent years. Although CCS brings convenience and effectiveness, it also triggers some new problems like vicious competition. This work studies the duopoly competi...Chauffeured car service(CCS) has developed rapidly in recent years. Although CCS brings convenience and effectiveness, it also triggers some new problems like vicious competition. This work studies the duopoly competition between CCS company and taxi company, in terms of different average cost and number of vehicles of two companies. To find the solutions like the pricing scheme to ease the vicious competition, Hotelling model is introduced. The Hotelling-type model is used to present passengers’ preferences to the companies. Besides, failing situation is taken into account in the Hotelling model to describe the situation where passenger’s demand is not satisfied in reality. This work theoretically analyzes the price scheme and equilibrium market segmentation based on the average cost and number of vehicles of each company. Furthermore, companies’ profits, passengers’ utility and social welfare in equilibrium are revealed based on the game theory. The study shows that both of companies can get optimal profits by setting effective price scheme. The company which has higher price, definitely gets less market share. In addition, moderate competition can lead to positive influence on social welfare.展开更多
文摘In big cities like Beijing, Shanghai and Guangzhou, trying to flag down a taxi during the morning and afternoon rush hours is a frustrating experience - passengers have to wait a long time to get one. However, if they use a tailored car service app on their smartphone, a car will materialize by their side within minutes. Though a little more expensive than taxis, the service is much better and so are the cars. Tailored car service apps like Kuaidi Zhuanche and Yihao Zhuanche have developed quickly in recent years.
基金Supported by the National Natural Science Foundation of China(71421001)
文摘Chauffeured car service(CCS) has developed rapidly in recent years. Although CCS brings convenience and effectiveness, it also triggers some new problems like vicious competition. This work studies the duopoly competition between CCS company and taxi company, in terms of different average cost and number of vehicles of two companies. To find the solutions like the pricing scheme to ease the vicious competition, Hotelling model is introduced. The Hotelling-type model is used to present passengers’ preferences to the companies. Besides, failing situation is taken into account in the Hotelling model to describe the situation where passenger’s demand is not satisfied in reality. This work theoretically analyzes the price scheme and equilibrium market segmentation based on the average cost and number of vehicles of each company. Furthermore, companies’ profits, passengers’ utility and social welfare in equilibrium are revealed based on the game theory. The study shows that both of companies can get optimal profits by setting effective price scheme. The company which has higher price, definitely gets less market share. In addition, moderate competition can lead to positive influence on social welfare.
