News: Ahmed Presents Research in Mannheim, Germany
Posted August 3, 2018
On July 3, School of Economics Ph.D. student Mishal Ahmed presented a paper at the 20th Summer Workshop for Young Economists at the Centre for European Economic Research (ZEW) in Mannheim, Germany. The paper, titled The Impact of Uber and Lyft on Taxi Service Quality – Evidence from New York City, is co-authored with Byung-Cheol Kim and Erik Johnson, both professors at the Department of Economics, Finance and Legal Studies at the University of Alabama.
In the paper, the authors analyze how the capture of street hails by Uber and Lyft has led to taxi drivers being increasingly forced to go to “hotspots”, i.e. airports, hotels and other similar places where they are guaranteed passengers albeit with longer wait times. Since roaming around streets at a slow pace in the hope of being hailed by a passenger is much less likely to generate a fare relative to days before Uber, these taxi drivers race back to hotspots once they drop off passengers. The authors find evidence of such behavior in data on complaints against taxi drivers regarding unsafe driving, thus finding the counterintuitive result that more competition has led to inferior service quality.
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