"Regardless of why they were introduced, medallions do more than restrict competition; they also give medallionholders something to lose if they abuse their lic

"Regardless of why they were introduced, medallions do more than restrict competition; they also give medallionholders something to lose if they abuse their license. Were barriers to entry eliminated, unscrupulous companies could put unsafe cabs on the road and simply fold up shop and reincorporate when anything bad happened." This is not true. In the usual situation where the cab operator leases the medallion one cannot touch the medallion to satisfy judgements against the cab operator. At least that's how things were when I studied this many years ago. So this is no reason to keep medallions. I agree that completely deregulating taxis is not the right way. But there is a sane way to regulate this. Just require safety and quality inspections, require taxi companies to hold a certain minimum insurance or financial responsibility fund, perhaps even put in minimum driver salary requirements and that is pretty much it. The number of actual taxis on the streets will limit itself by the forces of the free market.