The reason why Uber and Airbnb are able to succeed, at least in NYC (and perhaps SF, ....) is the use of politics to create artificial scarcity ("rent seeking")

The reason why Uber and Airbnb are able to succeed, at least in NYC (and perhaps SF, ....) is the use of politics to create artificial scarcity ("rent seeking"). In NYC there is an artificial limit on Taxi Medallions so that a medallion until recently could cost $1 million. Housing and hotel costs are so high because of zoning laws that have unrealistic and artificial housing density restrictions, thus increasing the cost of land, thus increasing the cost of housing and office space. Harvard Economist Edward Glaeser (cited by Nobelist Paul Krugman and others) wrote this: (Build Big Bill) http://www.nydailynews.com/opinion/build-big-bill-article-1.1913739 http://www.nydailynews.com/opinion/build-big-bill-article-1.... Thus, Uber and Airbnb owe much of their success to addressing market inefficiencies, "rent seeking" introduced by bad laws which serve special interests at the cost to people who take taxis, rent and buy apartments, and rent office space.