Abstract
MANY ECONOMISTS HAVE CONTENDED THAT DEREGULATION OF THE URBAN TAXICAB INDUSTRY WOULD RESULT IN BENEFITS TO CONSUMERS IN THE FORM OF LOWER PRICES, IMPROVED SERVICE, AND A WIDER VARIETY OF PRICE-SERVICE OPTIONS. SEVERAL LARGE US CITIES HAVE DEREGULATED THEIR TAXI INDUSTRIES, BUT IN BOTH TELEPHONE ORDER AND CABSTAND MARKETS THE EMPIRICAL RESULTS HAVE NOT BEEN CONSISTENT WITH PRIOR THEORETICAL EXPECTATIONS. THIS PAPER ANALYSES THE RESULTS OF TAXI DEREGULATION IN THESE US CITIES AND OFFERS EXPLANATIONS, BASED ON INDUSTRIAL ORGANISATION CONCEPTS, OF WHY THIS POLICY HAS LARGELY FAILED TO PRODUCE BENEFITS FOR EITHER CONSUMERS OR PROVIDERS.(Author/publisher).