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A Model of Taxi Service Under Fare Structure and Fleet Size Regulation

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  • Schroeter, John R.

Abstract

This article presents a model of taxi service in a regulated market where radio dispatch and airport cabstand are the primary modes of operation. Regulators have the potential to affect market performance through two means: changes in the number of licensed cabs and changes in drivers' mode choice incentives brought about by revision of the rate structure. The model admits the possibility that certain regulatory reforms may benefit taxi drivers and customers simultaneously. The questions of whether these possibilities actually exist in a particular market are addressed empirically. (Reprinted in The Economics of Transport, vol.II. ed. H. Mohring, Edward Elgar Publishing, 1994.)

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Bibliographic Info

Paper provided by Iowa State University, Department of Economics in its series Staff General Research Papers with number 11120.

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Date of creation: 01 Apr 1983
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Publication status: Published in Bell Journal of Economics, Spring 1983, vol. 14 no. 1, pp. 81-96
Handle: RePEc:isu:genres:11120

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Postal: Iowa State University, Dept. of Economics, 260 Heady Hall, Ames, IA 50011-1070
Phone: +1 515.294.6741
Fax: +1 515.294.0221
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Web page: http://www.econ.iastate.edu
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Cited by:
  1. Wong, K.I. & Wong, S.C. & Yang, Hai & Wu, J.H., 2008. "Modeling urban taxi services with multiple user classes and vehicle modes," Transportation Research Part B: Methodological, Elsevier, vol. 42(10), pages 985-1007, December.
  2. 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.
  3. Häckner, Jonas & Nyberg, Sten, 1992. "Deregulating Taxi Services - A Word of Caution," Working Paper Series 353, Research Institute of Industrial Economics.
  4. Cairns, Robert D. & Liston-Heyes, Catherine, 1996. "Competition and regulation in the taxi industry," Journal of Public Economics, Elsevier, vol. 59(1), pages 1-15, January.
  5. Wong, K. I. & Wong, S. C. & Yang, Hai, 2001. "Modeling urban taxi services in congested road networks with elastic demand," Transportation Research Part B: Methodological, Elsevier, vol. 35(9), pages 819-842, November.
  6. 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.
  7. Yang, Hai & Wong, S. C., 1998. "A network model of urban taxi services," Transportation Research Part B: Methodological, Elsevier, vol. 32(4), pages 235-246, May.
  8. Yang, Hai & Wong, S. C. & Wong, K. I., 2002. "Demand-supply equilibrium of taxi services in a network under competition and regulation," Transportation Research Part B: Methodological, Elsevier, vol. 36(9), pages 799-819, November.
  9. Marcos Singer & Patricio Donoso & Natalia Jadue, 2004. "Evaluacion De Las Oportunidades De Mejoramiento De La Logistica Directa De Emergencia," Abante, Escuela de Administracion. Pontificia Universidad Católica de Chile., vol. 7(2), pages 179-209.

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