The requirement that New York City taxi drivers own a "medallion" in order to operate a taxi in the city reduces competition and raises the fares that customers pay.

Question

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The medallion system limits the number of taxis on the road, creating a shortage of cabs and allowing medallion owners to charge higher fares due to the limited supply. This reduces competition and raises fares for customers.

The Requirement That New York City Taxi Drivers Own a "Medallion