The Impact of Taxicab Deregulation in the USA
Deregulation of taxicabs in several US cities has not produced the expected benefits. The authors analyse the reasons for this failure, and make suggestions for future policy.
Deregulation of taxicabs in several US cities has not produced the expected benefits. The authors analyse the reasons for this failure, and make suggestions for future policy.
There are economies of scale for very small taxicab firms, but over 75,000 trips per year average costs increase, so the curve is U-shaped.
The non-progressive taxicab industry survives and may be able to expand because there has been a relative decline in the quality and the real wages of drivers and in the prices of new motor vehicles. Further research is suggested.