About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

3 J. L. Econ. & Org. 117 (1987)
A Reconsideration of Taxi Regulation

handle is hein.journals/jleo3 and id is 125 raw text is: A Reconsideration of Taxi Regulation EDWARD C. GALLICK Federal Trade Commission DAVID E. SISK San Francisco State University In this paper we offer an explanation of how the regulatory enforcement of an average pricing rule for taxi services, which has been frequently observed throughout the history of taxi cabs,' can reduce exchange costs and promote efficiency. We further argue that in the modern era, the taxi medallion system became a useful and perhaps necessary institutional arrangement for enforc- ing average pricing rules. We do not claim that markets for taxi services cannot exist in the absence of regulation and medallions, but only that under certain circumstances, average pricing regulation, enforced by a medallion system, may promote efficiency. Finally, we discuss alternative institutional arrange- ments for enforcing average pricing. 1. AVERAGE PRICING Each taxicab ride is a relatively unique service. The cost of providing a ride, ignoring the comfort or style of travel, will be a function of distance, duration, We would like to thank Ronald Bond, John Hilke, Pauline Ippolito, Robert Mackay, and Douglas Webbink for comments on earlier drafts, and Daniel Alger, Rudy Gonzalez, Edward Mansfield, and Stephen Mehay for helpful discussions on the subject. The editors of this journal have provided us with very helpful suggestions. The analyses and conclusions set forth are those of the authors and do not necessarily reflect the views of the Bureau of Economics, other Commission staff, or the FTC itself. 1. A brief and interesting history of taxicabs is given in Gilbert and Samuels, chap. 2. The remainder of the book provides a survey of taxicabs and regulations in the United States. Interesting episodes of taxi regulation are given in Turvey; Eckert; and Kitch et al. Journal of Law, Economics, and Organization vol. 3, no. 1 Spring 1987 © 1987 by Yale University. All rights reserved. ISSN 8756-6222.

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Short-term subscription options include 24 hours, 48 hours, or 1 week to HeinOnline.

Purchase Access

Contact us for annual subscription options:

Contact Us

Already a HeinOnline Subscriber?

Log In

profiles profiles most