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Conflicting Interests in the Taxi Fare Regulation  
Product Ref: 05/218C Company: N/A

Product Type: Case Industry: Public Policy & Strategy

Related Product(s): Teaching Note
This Case investigates the Hong Kong Government's decision-making process in relation to the 2003 New Territories Taxi Fare Reduction Scheme. Under the scheme, the Government first decided to cut fares for all New Territories taxis by 20%, and then re-instated the previous fare levels within one month because of protests by some taxi operators. The taxi industry in Hong Kong can be considered as a cartel consisting of three major groups of taxi operators, namely rentee-drivers, renter-owners and owner-drivers. Each group has its own interests and agenda regarding the fare structure and regulations. Operators who supported and opposed the fare concession scheme are identified, and discussions are generated to understand the dynamics of a highly regulated industry operating under a "de facto" cartel.
Functional Area : Economics & Business Policy

Issues: Fare Regulation and Cartel Behaviour in the Taxi Industry; Different Interests in Fare Regulation
Length: 15 pages Country: Hong Kong SAR

Pub. Year: 2005 Level of Difficulty: 1
This product type is available in the following language(s):      English
Related Information: N/A
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