Regulation of the North American Taxicab Industry

Abstract

We examine the evolution of taxi regulation in NorthAmerica, providing a history of North American taxiregulation. We study the current structure of taxiregulation by generally looking at regulations inNorth America and specifically looking at regulationin New York City, the Boston metropolitan area, andLos Angeles. We discuss theoretical justificationsfor these regulations. By examining how the taxiindustry differs from other industries, we explainthe prevalence of price and quantity regulations,and why the industry remains heavily regulateddespite numerous attempts at deregulation. Wediscuss the cost of current regulations and howemerging technologies may face similar regulatorychallenges but may also offer new opportunities.