Ahmadi, Iman (2023) Face/Off : the adverse effects of increased competition. Quantitative Marketing and Economics, 21 . pp. 183-279. doi:10.1007/s11129-023-09262-z ISSN 1570-7156.

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Abstract

Increased competition can result in market efficiency. However, alternatively, it may provoke unethical behavior by sellers attempting to avoid losses—a risk that may be greater in credence goods markets, where consumers find it difficult to determine the value of goods or services received. The New York City (NYC) taxi market allows us to investigate how increased competition due to the launch of green-colored taxis (to serve only certain parts of NYC) may lead to fraudulent behavior by drivers of the established yellow taxis. An empirical study of more than 17 million matched yellow taxi trips revealed that fraudulent behavior was most prevalent on routes in which drivers faced increased competition for both pickups and post-drop-off pickups. However, after the launch of green taxis, there was no significant change in the trip distances of yellow taxis for rides subject to a flat-rate fare or for trips to/from office buildings where passengers were more familiar with optimal routes.

Item Type:	Journal Article
Subjects:	H Social Sciences > HB Economic Theory H Social Sciences > HE Transportation and Communications H Social Sciences > HV Social pathology. Social and public welfare
Divisions:	Faculty of Social Sciences > Warwick Business School > Marketing Group Faculty of Social Sciences > Warwick Business School
Library of Congress Subject Headings (LCSH):	Competition, Taxicab industry, Fraud, Industrial organization (Economic theory), Quality of products
Journal or Publication Title:	Quantitative Marketing and Economics
Publisher:	Springer New York LLC
ISSN:	1570-7156
Official Date:	2 June 2023
Dates:	Date Event 2 June 2023 Published 30 March 2023 Accepted
Volume:	21
Page Range:	pp. 183-279
DOI:	10.1007/s11129-023-09262-z
Status:	Peer Reviewed
Publication Status:	Published
Access rights to Published version:	Open Access (Creative Commons)
Date of first compliant deposit:	3 April 2023
Date of first compliant Open Access:	30 June 2023
Related URLs:	Publisher

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