"Medallions exist for a very good reason: they prevent a tragedy of the commons from creating gridlock and pollution in major cities by limiting the number of c

"Medallions exist for a very good reason: they prevent a tragedy of the commons from creating gridlock and pollution in major cities by limiting the number of cars circling around doing nothing on city streets." You're missing a huge piece of the equation: politics and corruption. Medallions were currency used to do favors to politicians, power-brokers, etc. It was a cheap way for someone to make some cash by renting it out. The government created the monopoly and scarcity; then those in power used it to make money. A story that's repeated all over the place.