Abstract:This paper considers a competitive traffic service market that includes the online car-hailing service and the taxi service. According to the perceived service experience, this paper divides the online car-hailing service into two categories. For example, chauffeured car service belongs to the category with a higher perceived service experience, and the ridesharing service is considered as the online car-hailing service with a lower perceived service experience. In order to achieve the regulation goal of fairness, this paper studies the price regulation strategy under the condition that two services coexist, and compares the changes of social welfare in three scenarios: noncompetitive market, competitive market with and without regulation. The results show that, when the perceived service experience of the online car-hailing service is higher than that of the taxi service, the implementation of the price regulation raises the online car-hailing service price, and the competition between two services improves social welfare, though the regulation reduces the social welfare; when the service experience of the online car-hailing service is lower than the taxi service experience, and the taxi service price is at a low level, the regulation goal can be realized without regulation. Herein, the change of social welfare is related to the perceived service experience of the online car-hailing service and the taxi service price.