Regulation of multi-sided transportation platforms in Costa Rica
Journal: International Journal of Arts and Social Science (Vol.2, No. 3)Publication Date: 2019-06-30
Authors : Oscar Ugalde Hernandez;
Page : 14-37
Keywords : regulation; innovation; firms; public policy; developing countries;
Abstract
The contending forces generated by friction between the collaborative platform firms in the paid transportation of people's market, and the regulation present in anti-trust policies in Costa Rica will be discussed in depth as a means of determining the economic impacts that new regulatory bills may cause.The recent entryof developing countries into the collaborative economy has caused social and economic tensions due to the lack of an updated and rejuvenated legal framework which could reconcile the economic and legal differences.The expected results of a new anti-trust policy to regulate collaborative transportation platform firms in Costa Rica are a higher regulated price, a lower quantity supplied of hailing rides, and a loss of efficiency in the sector consequence of the new technical requirements. The case of Uber Company's entry in Costa Rica is used to depict these economic effects
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