INTRODUCTIONThere has recently been outrage in Auckland over high taxi fare prices. The last significant change in the taxi industry was caused by government deregulation, in 1989. This economic survey report will examine the impact of this government policy and the unintended consequences for both consumers and taxi drivers. entry for those who want to become a taxi driver. This is due to the removal of the restriction on the number of taxis operating in specific areas, so anyone can obtain the license. Only basic requirements exist, such as passenger safety and testing of measurement equipment (Gaunt, 1996). The effect of this has been a dramatic increase in the number of drivers not just in Auckland, as it is relatively easy to get into the industry. For example, in 1994 Auckland saw a 67% increase in the number of taxi companies (Morrison, 1997). It is clear that the quantity of taxis available (provided) has increased, thanks to the reduction of barriers to entry; suggesting that the taxi market should be competitive. Demand for taxis is likely to have increased as Auckland's population has increased; from 943,776 people in the 1991 census (Statistics New Zealand, 1997) to 1,415,550 in the 2013 census (Statistics New Zealand, 2013). As a result there should be more people who need a taxi service. IMPACT ON CONSUMERS The effect of deregulation on supply is expected to have provided customers with reduced fares due to the increase in the number of taxis competing for their customers. However, in reality this is not true, otherwise there would be no people paying $198 for a 37 kilometer trip (Tait, 2014a). One reason for this is that pre-1989 tariffs had to be appr...... middle of paper ......te Planning A, 29(5), 913-928.Statistics New Zealand. (October 1997). NEW ZEALAND NOW: People and Places. Retrieved from http://www2.stats.govt.nz/domino/external/pasfull/pasfull.nsf/84bf91b1a7b5d7204c256809000460a4/4c2567ef00247c6acc256b03000936c4/$FILE/PEOPLEAN.PDFStistics New Zealand. (2013, October 15). 2013 Census of Usually Resident Population from http://www.stats.govt.nz/browse_for_stats/population/census_counts/2013CensusUsuallyResidentPopulationCounts_HOTP2013Census.aspxTait, M. (2014a, May 6). $198 Taxi to Auckland Airport: Taken for a spin. The New Zealand Herald. Retrieved from http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11249994Tait, M. (2014b, May 8). Former taxi driver: three years of soul-destroying struggle. The New Zealand Herald. Retrieved from http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11251413