Based on partial equilibrium analysis (PEA), Gaunt and Black (1994) and (1996)call for the immediate deregulation of the taxi industry. However, market failures-such as imperfect information. policing costs. price discrirnination and fraud-may limit the benefits from deregulation and may. on occasions, result in higher taxi fares. This paper questions the merits of using PEA to analyse deregulation of the taxi industry, but does not claim that current regulations are socially optimal.
|Number of pages||7|
|Journal||Economic Analysis and Policy|
|Publication status||Published - 1996|