Regulation of the Portugese transport market: an application to airport taxis
25 maart 2019
University of Antwerp, Room B.415 - Building B, Prinsstraat 13 - 2000 Antwerp (route: UAntwerpen, Stadscampus
Business economics seminar by Prof Daniel Murta (University of Coimbra)
The airports are run by a sole concessionary company; motorways by several, public and private, the latter ones under Public-Private Partnership contracts (PPPs), based on tender contests. Aside from regulation regarding safety and on the environment, transport Regulation is light. Taxis have a lenient regulator who approves the charges they want, on a national level; regulation of Platform-based Urban transportation has just been enacted (Nov, 2018), and aims to nudge them into an envelope of requirements that make them more like classic Taxis. The market fits a description of a free-entry cartel run by associations, tolerated by a captured regulator, where neither entry nor exit change price. For consumers, it is expensive. Meanwhile, monopoly profits are squandered among the maximum of drivers, who barely earn enough. Better if regulation evolved from the capture by the drivers’ organizations, towards price and licenses set according to traffic levels – positively - after a clearing negative price shock. Taxis can be relevant in bridging the gap between the efficient public transports and environmentally unsound and pricey car use.