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Uber and the Persistence of Market Power

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  • David Gabel

Abstract

Entry into the taxi industry involves few risks. Entrants have lower costs than the incumbents, sunk costs are small, and modern technology makes it easy to hail a cab using the Internet. Despite large scale entry and low barriers to entry, monopoly power persists. The persistence of monopoly power illustrates that new technologies may not quickly eviscerate monopoly power.

Suggested Citation

  • David Gabel, 2016. "Uber and the Persistence of Market Power," Journal of Economic Issues, Taylor & Francis Journals, vol. 50(2), pages 527-534, April.
    • Handle: RePEc:mes:jeciss:v:50:y:2016:i:2:p:527-534
    DOI: 10.1080/00213624.2016.1179060
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    Cited by:

    1. Christian Reiner & Christian Bellak, 2023. "Hat die ökonomische Macht von Unternehmen in Österreich zugenommen? Teil 1," Wirtschaft und Gesellschaft - WuG, Kammer für Arbeiter und Angestellte für Wien, Abteilung Wirtschaftswissenschaft und Statistik, vol. 49(1), pages 21-59.
    2. Dong, Zhenning & Leng, Mingming, 2021. "Managing on-demand ridesharing operations: Optimal pricing decisions for a ridesharing platform," International Journal of Production Economics, Elsevier, vol. 232(C).
    3. Yiyuan Ma & Ke Chen & Youzhi Xiao & Rong Fan, 2022. "Does Online Ride-Hailing Service Improve the Efficiency of Taxi Market? Evidence from Shanghai," Sustainability, MDPI, vol. 14(14), pages 1-16, July.
    4. Virginie Boutueil, 2018. "New Mobility Services," Post-Print hal-01981277, HAL.
    5. Azra Shamim & Awais Ali Khan & Muhammad Ahsan Qureshi & Hamaad Rafique & Adnan Akhunzada, 2021. "Ride or Not to Ride: Does the Customer Deviate toward Ridesharing?," IJERPH, MDPI, vol. 18(19), pages 1-18, October.
    6. Sun, Shouheng & Wang, Zhenqin & Wang, Weicai, 2023. "The impact of regulatory policy on the growth of ride-hailing platform: System dynamics perspective," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 632(P2).

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