The Competition Standard in Domestic Transportation Markets

Abstract

The transportation industry generally has a high sunk cost and the economies of scale that it is easier to form monopoly, concerted actions and price-leading behavior. On the other hand, the transportation industry also belongs to one of the consumer industry, which related to our daily necessities. Therefore, the transportation industry has some characteristics like public service that the government imposes economic regulation on.

In addition to regulation control, the government usually provide the industry with subsidy; for example: direct money subsidy, indirect subsidy, monopolizing the specific business region or transport operating routes, assistance in obtaining the land or permitting the use and development of the land, etc. However, as our country enters the World Trade Organization (WTO); under internationalization, liberalization, and deregulation, how will the government control or provide subsidy to this industry and how will the regulation influence the competition in this market. These are surely something that is worth to research about.

Furthermore, the transportation industries includes ground transportation, sea transportation as well as air transportation are very extensively. The law that the transportation industry abides by not only is extremely complicated but it is also involved in various issues of market structure and competitiveness. Therefore it is necessary to further understand the transportation law and what it intrudes in.

Besides this, when the regulatory agencies of transportation and communications are involved in the anti-market regulations; how do the agency of fair-competition implicate Article 46 of Fair Trade Law to be involved and to establish reasonable competition order. This is one of the major concerns that this research project will convey.