Taxi Industry Regulation, Deregulation, and Reregulation: The Paradox of Market Failure

by Orborde 1 min read16th Dec 2019No comments

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(from the March 2018 Gwern.net newsletter)

Uber/Lyft are disrupting the near-total regulatory capture of the taxi industry. But why does that regulatory mess exist in the first place? As it turns out, the regulations are trying to solve a bunch of specific market failures in the legacy taxi industry, and this paper thoroughly explains what those failures are.