[houseabsolute]

Re: cabs, it seems like the price is plenty high from the perspective of a buyer. The real problem I suspect is that the city limits the number of medallions issued to 1,500 per year. There are people who wait years to get a medallion.

http://abclocal.go.com/kgo/story?section=news/iteam&id=6... -- "The city of San Francisco limits the number of cabs on the streets by handing out 1,500 permits or 'taxi medallions.' Drivers on the list wait up to 10 years to get one."

[uuilly]

Wow, nice find. So they fix the price AND the supply. Our urban overlords have reached a Soviet level of confidence in their ability to manage an economy.

[houseabsolute]

The cabbies are in on it too. The prices are higher than they would probably be in a truly free market for cab fares, and that situation can be maintained more easily when the incumbents can prevent new competitors from entering the market.

[uuilly]

Oh for sure:

cartel |kärˈtel| noun an association of manufacturers or suppliers with the purpose of maintaining prices at a high level and restricting competition : the Colombian drug cartels. • chiefly historical a coalition or cooperative arrangement between political parties intended to promote a mutual interest.

[houseabsolute]

From Adam Smith:

"People of the same trade seldom meet together, even for merriment and diversion, but the conversation ends in a conspiracy against the public." - Adam Smith