Our taxicab fares are far from fair
LAST week I ordered a taxi and I was shocked to learn the starting price was €4.10 on the meter, with €3 to come to my home, making a total of €7.10. On my return, I called a friend in Boston to learn that the charge for a taxi there to collect him at his home in Boston is $2.65, or €2.10.
It is the same starting price if he hails a taxi down in the street. The taxi sector would appear to be the only business sector where prices have not decreased in this recession.
In addition, there has been a big increase in the number of taxis. Basic market economics would suggest that when supply exceeds demand the market price should fall.