The Economic Cost of Taxicab Regulation: The Case of Brisbane

Clive Gaunt and Terry Black
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Clive Gaunt: Queensland University of Technology
Terry Black: Queensland University of Technology

Economic Analysis and Policy, 1996, vol. 26, issue 1, 45-58

Abstract: The Brisbane taxicab industry is highly regulated with government imposed controls over the number of taxi licenses issued and the fares to be charged. These controls protect existing license holders from competition, allowing monopoly rents to be earned. Monopoly rents are reflected in the market price of a Brisbane taxi license which was around $190,000 in 1993. Deregulation of the industry, were it to occur, would be expected to benefit consumers of taxicab services by an average of $1.47 per taxi ride, through a combination of an expected 15 per cent increase in the number of taxicabs, and service innovation thereby ending the 20 million dollar per annum consumer wealth loss.

Keywords: Competition; Deregulation; Monopoly; Regulation; Taxis (search for similar items in EconPapers)
JEL-codes: L43 L51 L92 R48 (search for similar items in EconPapers)
Date: 1996
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