Pricing strategy of state-owned expressway company: From the perspective of social responsibility

The existing investment and financing system of expressway in China determines that a state-owned expressway company is under special status in the market. The state-owned expressway company bears special social responsibilities and the key for the company to fulfill its social and economic responsibilities is the pricing. In the game of deciding the toll rate of expressway, the expressway company possesses a privilege of actualizing the price strategy because of its superiority in getting information. It is difficult for the government to regulate that behavior with just a simple price control policy. It is, therefore, imperative for the state-owned expressway company to establish a suitable incentive mechanism which can balance its social and economic responsibilities.