Okay, Delong's post is a few weeks old, but give me a break - I'm just getting in to this blogging thing. Also, work and a full time school schedule. Also, shiny objects.
Where was I? Right, Delong. I'll get to him. First, some background.
So a while back, Mario Rizzo explains why he doesn't always tip New York City cab drivers. Brad Delong responds, if you can call it a response. And the issue came up with Delong again. Go ahead and read the posts - they're not too long. I'll wait here.
Back? Okay, good. When Delong says "I will never understand these people," I find myself saying much the same thing about him.
Note that Delong doesn't dispute that the taxi medallion system in New York City has the effect of limiting competition, thereby allowing taxis to charge artificially high prices to people who need a ride. When the cab driver is also the owner of the medallion, he pockets all the extra money. But even when the cab driver is leasing the medallion, Rizzo points out that higher tips to cab drivers results in medallion owners charging higher prices to drivers for the use of the medallion, so even in this case, the medallion owner will pocket the extra money, leaving the amount of money the driver keeps unchanged in the aggregate. All of this is ignored by Delong.
Showing posts with label taxis. Show all posts
Showing posts with label taxis. Show all posts
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