Uber and the Persistence of Market Power. Issue 2 (2nd April 2016)

• Record Type: Journal Article
• Authors: Gabel, David
• Is Part Of: Journal of economic issues. Volume 50:Issue 2(2016)
• Page Start: 527
• Page End: 534
• Publication Date: 2016-04-02
• Subjects: hit-and-run entry -- monopoly -- value; L13 -- L51 -- L98; Economics -- Periodicals; Economics; Économie politique -- Périodiques; Economie; ECONOMICS; ECONOMIC POLICY; Periodicals; 330.05
• DOI: 10.1080/00213624.2016.1179060
• Languages: English
• ISSNs: 0021-3624

Abstract

Abstract: Entry into the taxi industry involves few risks. Entrants have lower costs than the incumbents, sunk costs are small, and modern technology makes it easy to hail a cab using the Internet. Despite large scale entry and low barriers to entry, monopoly power persists. The persistence of monopoly power illustrates that new technologies may not quickly eviscerate monopoly power.