In this paper we use a microeconomic model to evaluate, for the case of Santiago
De Chile, the most commonly used regulatory policies applied to the production
of cruising taxi services. The analysis considers the influence of both, supply
demand synchronization problems and consumption externalities on the passengers
waiting times. We assume that taxi services are produced by both taxi operators
and passengers. The later provide production factors as the waiting and travel
times, which makes them both producers and consumers of the services. Consistent
with this, we define short run and long run production cost functions, considering
factors provided by operators and passengers. We use a generalized price function
formulation in order to define the demand function for taxi runs. This function
considers that the demand for taxi services does not only depend on the fare value,
but also on the level of service experienced by passengers.
allows obtaining interesting conclusions with respect to the social benefits and
costs associated with the different regulatory policies evaluated. These conclusions
should be valid for any system of urban taxis that operates similarly to that
of Santiago De Chile.