[notatoad]

But the whole selling point of a taxi medallion is that the government will limit supply. If a developer was sold the rights to build 1000 apartments under an agreement that the government would limit future development in the region and they later opened the market, the developer they made that promise to would be right to expect some compensation.

The problem isn't the compensation. The problem is that the government promised artificial scarcity to the taxi companies in the first place.

[wycx]

Does the legislation specifically state artificial scarcity will be enforced, or just that supply will be regulated by the govt?