There are too few taxis in SF today. The city has been adding medallions[1]; unfortunately the years-old plan to add medallions has been slowed by implementati

There are too few taxis in SF today. The city has been adding medallions[1]; unfortunately the years-old plan to add medallions has been slowed by implementation issues and controversy around details. However, my point above was more theoretical. There is still some number beyond which each additional driver would have a positive incentive to enter the market, but the net social benefit would be negative (i.e. tragedy of the commons). So it still is reasonable to cap medallions in large, dense cities. [1] http://www.sfexaminer.com/local/Scaled-down-plan-for-taxi-medallions-launches-95592049.html http://www.sfexaminer.com/local/Scaled-down-plan-for-taxi-me...