-----Original Message----- From: Wojtek Sokolowski <sokol at jhu.edu> To: lbo-talk at lists.panix.com <lbo-talk at lists.panix.com>
>So if the invisible hand has failed to bring the prices of everything else
>to the lowest common denominator (another example: convenience store vs.
>supermarket prices), there is no reason to believe it will do the same with
>taxicab fares.
This whole discussion ignores the fact, as I understand it, that cab fares in New York City are regulated by a city commission. That means that there is a ceiling on fares as well as support for a basement on far fares will fall (although informal negotiations can violate those rules in either direction).
Given the ecological discussion earlier, there is also a public interest in limiting the number of cabs on the street, which I am sure has been used over the years to defend the medallion system.
I am unconvinced that limiting the medallions helps workers in the long run, but can people provide other reasons why it supports the public interest to limit the number of medallions?
--Nathan Newman