The principal conclusion of this report is that no persuasive economic rationale is available for some of the most important regulations. Restrictions on the total number of firms and vehicles and on minimum fares waste resources and impose a disproportionate burden on low income people. A number of cities have achieved favorable results by deregulating entry and minimum fares in the radio-dispatched market segment, which typically accounts for around 75 percent of all cab trips. Similarly, there is no economic justification for regulations that restrict shared-ride, dial-ride, and jitney service.
Loading...