AN ECONOMIC ANALYSIS OF TAXICAB REGULATION

The taxicab industry is heavily regulated, mainly by local governments. Entry, fares, services, and quality are restricted in a substantial majority of large urban areas. However, a number of cities have recently deregulated entry, fares, and some aspects of service. This report provides an economic analysis of these taxicab regulations and experiences with regulatory reform. The report is organized in seven sections. Section I is an introduction. Section II provides an overview of the taxi industry and existing regulations. Section III presents the theoretical model of a taxicab market. Section IV discusses potential sources of market failure in the market for taxicab services. It also provides a discussion of the motivations behind taxi regulation and a brief history of taxi regulation. Section V analyzes the economic effects of taxi regulations on the structure of the industry and its performance, on the efficiency with which resources are allocated within the taxicab industry and between this industry and other activities, and on the distribution of income. Section VI reviews the experience of cities that have experimented with deregulation of taxicabs. Section VII briefly summarizes conclusions. Appendix A provides further details of the theoretical model of a taxicab market. Appendix B summarizes empirical estimates of the demand for taxi service.

  • Corporate Authors:

    Federal Trade Commission

    Bureau of Economics, Pennsylvania Avenue at 6th Street, NW
    Washington, DC  United States  20580
  • Authors:
    • Frankena, M W
    • Pautler, P A
  • Publication Date: 1984-5

Language

  • English

Media Info

  • Features: Appendices; Figures; References; Tables;
  • Pagination: 184 p.

Subject/Index Terms

Filing Info

  • Accession Number: 00629141
  • Record Type: Publication
  • Files: TRIS
  • Created Date: May 25 1993 12:00AM