INCONVENIENT AND UNNECESSARY? REGULATIONS IN THE U.S. TAXI INDUSTRY

Colton Johnson and Thomas Snyder
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Colton Johnson: University of Central Arkansas, USA
Thomas Snyder: University of Central Arkansas, USA

Studies in Business and Economics, 2017, vol. 12, issue 3, 76-91

Abstract: A Certificate of Public Convenience and Necessity (CPCN) is a common requirement for a new business owner in services such as utilities, communications, healthcare, and transportation. However, studies have called into question the effectiveness and purpose of these laws when applied in certain industries. This study chronicles the development of and justifications provided for the enactment of CPCN laws. It then empirically tests the effectiveness of these laws in the taxi industry. This paper finds no evidence that the CPCN laws in the taxi industry are meeting their objectives. Some evidence suggests that CPCN laws achieve the opposite of their intention.

Keywords: public interest; taxicab; city regulation; Uber; CPCN (search for similar items in EconPapers)
Date: 2017
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