A Tale of Two Cities: An Examination of Medallion Prices in New York and Chicago

31 Pages Posted: 22 Jan 2017 Last revised: 4 Jan 2018

Sutirtha Bagchi

Villanova University - School of Business - Economics

Date Written: January 31, 2017

Abstract

This paper examines the institution of taxicab medallions in two of the largest cities of the U.S. -- New York and Chicago -- and changes in the prices of those medallions during the period 2009-2016 (for New York City) and 2007-2016 (for Chicago). We document a drop of roughly 50 percent in the prices of these medallions in New York and roughly 80 percent in Chicago from their peak in 2013/2014 to the present. We also find that medallion prices are positively correlated with taxicab revenues (for New York City) and negatively correlated with proxies for the intensity of adoption of Uber and Lyft and interest rates in both cities.

Keywords: Taxicab Medallions, Transportation Network Company, Uber, Lyft

JEL Classification: L43, L51, G14, M13

Suggested Citation

Bagchi, Sutirtha, A Tale of Two Cities: An Examination of Medallion Prices in New York and Chicago (January 31, 2017). Available at SSRN: https://ssrn.com/abstract=2901489 or http://dx.doi.org/10.2139/ssrn.2901489

Sutirtha Bagchi (Contact Author)

Villanova University - School of Business - Economics ( email )

United States

HOME PAGE: https://sites.google.com/site/sutirthabagchi/

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