Abstract
In 1990, the taxicab industry in Sweden was deregulated. By eliminating entry and price controls, it was expected that prices would decrease and efficiency/productivity would increase. This paper examines the effects of deregulation in rural areas. We assume that the geographic setting, with respect to population composition, population density, economic life, infrastructure, transport service provision, etc., provides different conditions for taxicab services as well as different demands for taxicab services. Taxi logs and taxi meters provided data for this study. The results indicate that although not all expectations have been fulfilled, some positive effects concerning competition and productivity are noted.
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