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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.)

Suggested Citation

  • Schroeter, John R., 1983. "A Model of Taxi Service Under Fare Structure and Fleet Size Regulation," Staff General Research Papers Archive 11120, Iowa State University, Department of Economics.
  • Handle: RePEc:isu:genres:11120
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    Cited by:

    1. 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.
    2. 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.
    3. 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.
    4. Wang, Xiaolei & He, Fang & Yang, Hai & Oliver Gao, H., 2016. "Pricing strategies for a taxi-hailing platform," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 93(C), pages 212-231.
    5. 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.
    6. repec:eee:transb:v:105:y:2017:i:c:p:559-578 is not listed on IDEAS
    7. 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.
    8. Small, Kenneth A, 2004. "6. Road Pricing And Public Transport," Research in Transportation Economics, Elsevier, vol. 9(1), pages 133-158, January.
    9. Häckner, Jonas & Nyberg, Sten, 1992. "Deregulating Taxi Services - A Word of Caution," Working Paper Series 353, Research Institute of Industrial Economics.
    10. 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.
    11. 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.
    12. repec:eee:transb:v:100:y:2017:i:c:p:222-254 is not listed on IDEAS
    13. 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.

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