The Analysis and the solving of local protectionism in passenger transportation between adjacent cities based on game theory

Local protectionism between cities always blocks the development of social economy, which puzzles the managers. This article has mainly analyzed the cause and the representation of this problem. And then the quantization model is found based on the game theory, which can analyze the interest relationship between government and enterprise measurably. The relationship between local protectionism and social welfare will be given by the model and the idea of turning passenger transportation to public transport is advised based on the result of the analysis and the case. Eventually, the detailed measure and suggestion was advised to avoid local protectionism and increase the social welfare.