In the past, we have blogged about how taxis use regulation to thwart competition. Now we have Dr. Mark Frankena, a former high ranking FTC regulator, calling out Nashville (in a forthcoming article in Regulation) for its minimum price regulation (this would be illegal under the antitrust laws if done by the taxis themselves) and for imposing ridiculous cost-raising requirements on limos:
Those anticompetitive regulations have harmed Nashville’s residents and visitors alike, while enabling taxi and limousine companies to earn greater profits. ... This article tells the story behind those events, and why Nashville is worse off for them.
Although it pains me to have to teach this to my students, it is yet another example of "make the rules or your rivals will"--in this case to raise profit at the expense of consumers.
Call your Council Members and let them know what you think. I did.
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