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Do Economists Reach a Conclusion on Taxi Deregulation?

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  • Adrian T. Moore
  • Ted Balaker

Abstract

Taxicabs are an important part of the urban transportation system, and in most communities are heavily regulated. In the past 25 years many cities have deregulated taxi markets. A substantial literature has emerged examining the merits of deregulation. Here we provide a tour of the main points of contention in the scholarly research on the desirability of taxi deregulation. We find that most economic studies of taxi deregulation find it to be on net beneficial. We mined the literature for economists’ judgments on taxi deregulation. The support for taxi deregulation is preponderant, but not overwhelmingly so. We suggest that the literature favorable to deregulation is richer and broader than the unfavorable literature, which disproportionately is model-building. There is wide consensus that taxi deregulation has been less impressive than advocates had hoped. A very important matter of interpretation is whether the disappointment was due to the over-estimation of what deregulation could deliver, or to deregulation not having been thoroughgoing. Another interpretative issue is whether restrictions on service originating at airports ought to be deemed intervention or contract within the nexus of property relations. Finally, there are also unresolved questions about whether the effects of deregulation have been fully accounted for.

Suggested Citation

  • Adrian T. Moore & Ted Balaker, 2006. "Do Economists Reach a Conclusion on Taxi Deregulation?," Econ Journal Watch, Econ Journal Watch, vol. 3(1), pages 109-132, January.
    • Handle: RePEc:ejw:journl:v:3:y:2006:i:1:p:109-132
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    References listed on IDEAS

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    Cited by:

    1. Salanova Grau, Josep Maria & Estrada, Miquel, 2019. "Social optimal shifts and fares for the Barcelona taxi sector," Transport Policy, Elsevier, vol. 76(C), pages 111-122.
    2. Clifford Winston, 2013. "On the Performance of the U.S. Transportation System: Caution Ahead," Journal of Economic Literature, American Economic Association, vol. 51(3), pages 773-824, September.
    3. Amit Tzur, 2019. "Uber Über regulation? Regulatory change following the emergence of new technologies in the taxi market," Regulation & Governance, John Wiley & Sons, vol. 13(3), pages 340-361, September.
    4. Yang, Hai & Leung, Cowina W.Y. & Wong, S.C. & Bell, Michael G.H., 2010. "Equilibria of bilateral taxi-customer searching and meeting on networks," Transportation Research Part B: Methodological, Elsevier, vol. 44(8-9), pages 1067-1083, September.
    5. Peter Abelson, 2010. "The High Cost of Taxi Regulation, with Special Reference to Sydney," Agenda - A Journal of Policy Analysis and Reform, Australian National University, College of Business and Economics, School of Economics, vol. 17(2), pages 41-72.
    6. Cetin, Tamer & Deakin, Elizabeth, 2019. "Regulation of taxis and the rise of ridesharing," Transport Policy, Elsevier, vol. 76(C), pages 149-158.
    7. Yang, Hai & Fung, C.S. & Wong, K.I. & Wong, S.C., 2010. "Nonlinear pricing of taxi services," Transportation Research Part A: Policy and Practice, Elsevier, vol. 44(5), pages 337-348, June.
    8. Çetin, Tamer & Yasin Eryigit, Kadir, 2013. "The economic effects of government regulation: Evidence from the New York taxicab market," Transport Policy, Elsevier, vol. 25(C), pages 169-177.
    9. Yang, Hai & Yang, Teng, 2011. "Equilibrium properties of taxi markets with search frictions," Transportation Research Part B: Methodological, Elsevier, vol. 45(4), pages 696-713, May.
    10. Daniel B. Klein & Charlotta Stern, 2007. "Is There a Free‐Market Economist in the House? The Policy Views of American Economic Association Members," American Journal of Economics and Sociology, Wiley Blackwell, vol. 66(2), pages 309-334, April.
    11. Schaller, Bruce, 2007. "Entry controls in taxi regulation: Implications of US and Canadian experience for taxi regulation and deregulation," Transport Policy, Elsevier, vol. 14(6), pages 490-506, November.
    12. Aarhaug, Jørgen & Olsen, Silvia, 2018. "Implications of ride-sourcing and self-driving vehicles on the need for regulation in unscheduled passenger transport," Research in Transportation Economics, Elsevier, vol. 69(C), pages 573-582.
    13. Ted Balaker & Cecilia Joung Kim, 2006. "Do Economists Reach a Conclusion On Rail Transit?," Econ Journal Watch, Econ Journal Watch, vol. 3(3), pages 551-602, September.
    14. Long, Jiancheng & Szeto, W.Y. & Du, Jie & Wong, R.C.P., 2017. "A dynamic taxi traffic assignment model: A two-level continuum transportation system approach," Transportation Research Part B: Methodological, Elsevier, vol. 100(C), pages 222-254.
    15. Wong, R.C.P. & Szeto, W.Y., 2018. "An alternative methodology for evaluating the service quality of urban taxis," Transport Policy, Elsevier, vol. 69(C), pages 132-140.
    16. Virginie Boutueil & Thomas Quillerier & Anna Voskoboynikova, 2019. "Benefits and Pitfalls of Deregulating Taxi Markets: Can Contrasted Case Studies Help Inform the Debate?," Post-Print hal-02422160, HAL.
    17. Li, Baicheng & Szeto, W.Y., 2019. "Taxi service area design: Formulation and analysis," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 125(C), pages 308-333.
    18. Shaheen, Susan PhD & Cano, Lauren & Camel, Madonna, 2015. "Exploring Electric Vehicle Carsharing As A Mobility Option for Older Adults:A Case Study of A Senior Adult Community in The San Francisco Bay Area," Institute of Transportation Studies, Research Reports, Working Papers, Proceedings qt0cz5s74s, Institute of Transportation Studies, UC Berkeley.
    19. Thomas Tacker, 2021. "Competitive Safety in Uber versus the Taxi Industry," Journal of Private Enterprise, The Association of Private Enterprise Education, vol. 36(Fall 2021), pages 49-66.
    20. Alonso, Borja & Barreda, Rosa & dell’Olio, Luigi & Ibeas, Angel, 2018. "Modelling user perception of taxi service quality," Transport Policy, Elsevier, vol. 63(C), pages 157-164.
    21. Çetin, Tamer & Yasin Eryigit, Kadir, 2011. "Estimating the effects of entry regulation in the Istanbul taxicab market," Transportation Research Part A: Policy and Practice, Elsevier, vol. 45(6), pages 476-484, July.

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    More about this item

    Keywords

    Taxi markets; transportation; regulation; deregulation; liberalization; economists;
    All these keywords.

    JEL classification:

    • R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy
    • L5 - Industrial Organization - - Regulation and Industrial Policy
    • B0 - Schools of Economic Thought and Methodology - - General

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