We begin this week’s reads with an interview with Paul Samuelson by John Cassidy from The New Yorker. John Cassidy recently published a new book, How Markets Fail, which I’ll read some time soon. It won’t be that soon though – I’m still reading Thinking Strategically and moving on to Art of Strategy after that.
Eric Morris shared something about the cab industry in New York, which eventually concluded with urging for less regulation (ie. raising the supply of cab licenses or “medallions” as they’re called). One of the comments revealed a really humourous story of how the cabbie’s industry in Ireland got deregulated overnight; I shall reproduce it here:
A similar sitution existed in Ireland up to a few years ago. Change was brought about when the government went to issue more wheel chair accessable taxi licenses. The Taxi driver / owners group foolishly sued the government. They claimed that the government didn’t have the right to issue new licenses. They won but the court ruled that the government didn’t have the power to issue any licenses. The taxi ma[r]ket was deregulated overnight.
The current complaint from taxi drivers is that there are too many taxis etc etc. There were clear winners, the consumer and those new taxi drivers who are now free to ply their trade in a vastly increased taxi market.
The fact that GPS navigation on-board cars/cabs are widely available means that the tacit barrier to entry for the cab business have been significantly lowered. Anyone who can drive and have a car with on-board GPS navigation (and perhaps a meter) can technically offer good taxi services. Knowledge of the city and the different landmarks have become less of an advantage or requirement.
As for talks that you might want to listen to, Magnus Larsson speaks about structuring sand in deserts to prevent further desertification. His proposal won the Holcim Awards.