Even though the cab drivers are 'free agents', the economics of the business are pretty harsh (due to the city limiting the number of yellow cabs) : http://www.

Even though the cab drivers are 'free agents', the economics of the business are pretty harsh (due to the city limiting the number of yellow cabs) : http://www.usatoday.com/money/industries/travel/2009-08-05-taxi-cab-new-york-city-medallions_N.htm http://www.usatoday.com/money/industries/travel/2009-08-05-t... I believe (maybe incorrectly) that an individual driver pays (>$100) to take a taxi out on a shift. 12 hours later, when they return the cab, it's a pure win/lose situation. The drivers themselves don't feel like the city is subsidizing them at all. Whereas the rules are put here by the city to create the public good of reliable, non-discriminatory transport everywhere, the drivers actively pay for the fact that the city is creating artificial shortage of cabs...