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A Tale of Two Cities: An Examination of Medallion Prices in New York and Chicago

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Abstract

This paper examines the institution of taxicab medallions in two of the largest cities of the U.S.: New York and Chicago and changes in the prices of those medallions during the period 2009-2016 (for New York City) and 2007-2016 (for Chicago). We document a drop of roughly 50% in the prices of these medallions in New York and roughly 80% in Chicago from their peak in 2013/2014 to the present. We also find that medallion prices are positively correlated with taxicab revenues and negatively correlated with proxies for the intensity of adoption of Uber and Lyft in both cities.

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  • Sutirtha Bagchi, 2017. "A Tale of Two Cities: An Examination of Medallion Prices in New York and Chicago," Villanova School of Business Department of Economics and Statistics Working Paper Series 33, Villanova School of Business Department of Economics and Statistics.
    • Handle: RePEc:vil:papers:33
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    Cited by:

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    2. Conor Lennon & Johanna Catherine Maclean & Keith F. Teltser, 2024. "Ridesharing and Substance Use Disorder Treatment," NBER Working Papers 33077, National Bureau of Economic Research, Inc.
    3. Smith, Göran & Theseira, Walter, 2020. "Workshop 5 report: How much regulation should disruptive transport technologies be subject to?," Research in Transportation Economics, Elsevier, vol. 83(C).
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    More about this item

    Keywords

    Taxicab medallions; Transportation Network Company; Uber; Lyft;
    All these keywords.

    JEL classification:

    • L43 - Industrial Organization - - Antitrust Issues and Policies - - - Legal Monopolies and Regulation or Deregulation
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups

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