The impact of taxi deregulation on small urban areas: some New Zealand evidence

Clive Gaunt

Transport Policy, 1995, vol. 2, issue 4, 257-262

Abstract: In 1989 the New Zealand government deregulated the taxicab industry. Barriers to entry and centralised fare setting were abandoned. This paper examines the impact of the deregulation on industry concentration and fares in urban areas with populations of less than 100 000. While there appears to be only minor changes in concentration and fares in these areas, the direction and magnitude of fare changes, in particular, appear to be related to the size of the urban centre. Two alternative explanations are offered for this result. Evidence is presented which supports one explanation and indicates that the deregulated taxi market is competitive.

Date: 1995
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