The Study of the Regulation of "Car-Renting Under Network" From The Perspective of Information Display Mechanism

DOI

10.2991/febm-16.2016.60How to use a DOI?

Keywords

car-renting based on network; regulation; information display

Abstract

Rapidly developed car-renting based on the network greatly changed the industry, which arises challenges to traditional taxi industry regulatory agencies. This article first analysis the similarities and differences of them from the perspective of information display mechanism. The paper points out that the car-renting under network creates information asymmetry between regulator and company while eliminating the information asymmetry between demand and supply. Based on principle-agent model in regulation theory, the paper concludes that the key to solve the regulatory problems is to realize information symmetry between regulator and company instead of regulating price and quantity directly. Through the study of car-renting under the principal-agent model, this paper draws a conclusion that the government should require the network company to disclose the relevant information to maximize government supervision benefit.

Copyright

© 2016, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Pei Shang
AU  - Jinjing Li
PY  - 2016/11
DA  - 2016/11
TI  - The Study of the Regulation of "Car-Renting Under Network" From The Perspective of Information Display Mechanism
BT  - Proceedings of the First International Conference Economic and Business Management 2016
PB  - Atlantis Press
SP  - 397
EP  - 403
SN  - 2352-5428
UR  - https://doi.org/10.2991/febm-16.2016.60
DO  - 10.2991/febm-16.2016.60
ID  - Shang2016/11
ER  -