Rethinking Taxi Regulations: The Case for Fundamental Reform

26 Pages Posted: 18 Sep 2016

See all articles by Michael Farren

Michael Farren

Mercatus Center at George Mason University

Christopher Koopman

Mercatus Center at George Mason University

Matthew D. Mitchell

George Mason University - Mercatus Center

Date Written: July 19, 2016

Abstract

New technology can cause significant changes in an industry, potentially improving both consumer welfare and governance. The initial reaction of many regulators to the advent of “ridesharing” platforms such as Uber and Lyft was either to outlaw them or to burden them with the same level of regulations as taxis. But policymakers are now beginning to take a new approach. They are aiming to achieve regulatory parity between ridesharing platforms and taxis by deregulating taxis. In a new study, “Rethinking Taxi Regulations: The Case for Fundamental Reform,” Mercatus research fellows Michael Farren and Christopher Koopman and senior research fellow Matthew Mitchell determine that taxi regulation is outdated in light of the transformative technology changes and business innovations of the last few years. Now is an opportune time for fundamental reform of the entire regulatory regime to create a fair, open, and competitive transportation market.

Keywords: taxis, sharing economy, regulation, regulatory capture, asymmetric information, transactions costs, platform markets

JEL Classification: H7, K2, L5, L9, R4, R5

Suggested Citation

Farren, Michael and Koopman, Christopher and Mitchell, Matthew D., Rethinking Taxi Regulations: The Case for Fundamental Reform (July 19, 2016). Available at SSRN: https://ssrn.com/abstract=2838918 or http://dx.doi.org/10.2139/ssrn.2838918

Michael Farren

Mercatus Center at George Mason University ( email )

3434 Washington Blvd., 4th Floor
Arlington, VA 22201
United States

HOME PAGE: http://mercatus.org/michael-farren

Christopher Koopman

Mercatus Center at George Mason University ( email )

3434 Washington Blvd., 4th Floor
Arlington, VA 22201
United States

Matthew D. Mitchell (Contact Author)

George Mason University - Mercatus Center ( email )

3434 Washington Blvd., 4th Floor
Arlington, VA 22201
United States

HOME PAGE: http://meractus.org

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