Bryan Caplan wrote: > If a majority of NYers > seriously wanted free entry in cabs, wouldn't it happen regardless of > the opinions of cab companies?
Bryan is gently pointing out that my assumptions may be inconsistent with my earlier posts on democracy. Nevermind, I contain multitudes. It does seem, however, that this is a good case of concentrated benefits, diffuse costs. In addition, there are serious constitutional issues involved in opening the market to free-entry because this would probably constitute a "taking." Thus the cab companies have the motive and means to prevent entry. Of course, there's no denying a majority if it really wants something - even the constitution can be overriden (does anyone remember that little thing about Congress having the power to declare war?) - but in this case the public doesn't care enough about the issue to overcome the cab companies at their most powerful but it might care enough to overcome the companies if their opposition was diminished by a buyout. Alex -- Dr. Alexander Tabarrok Vice President and Director of Research The Independent Institute 100 Swan Way Oakland, CA, 94621-1428 Tel. 510-632-1366, FAX: 510-568-6040 Email: [EMAIL PROTECTED]
