Inconvenient and Unnecessary? Regulations in the U.S. Taxi Industry
Johnson Colton, Snyder Thomas
Studies in Business and Economics · 2017
doi:10.1515/sbe-2017-0038 (opens in a new tab)
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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.
Abstract licence: CC BY-NC-ND
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