Economists Give Uber and Lyft a Resounding Thumbs Up

Writing for the Washington Post, Emily Badger shares news of the latest survey of the Initiative on Global Markets Economic Experts Panel. The survey questioned the panel on the economic benefits of transportation network companies like Uber and Lyft. 

In setting the context for the debate that inspired the survey, Justin Wolfers writes for the New York Times that the arguments of competitor services (i.e., taxis and limousines) "dress their naked self-interest in the guise of public policy concerns."

The question for the economists, according to Wolfers, is "do the economists buy it?" And "[should] regulators restrict the prices, the number of drivers or the available routes available to Uber and its brethren?""

In asking whether "letting car services such as Uber or Lyft compete with taxi firms on equal footing regarding genuine safety and insurance requirements, but without restrictions on prices or routes, raises consumer welfare," the survey found cler support for competition. According to Wolfers, "the responses varied only in the intensity with which they agreed. Of the 40 economists who responded, 60 percent 'strongly agree,' 40 percent 'agree,' and none chose 'uncertain,' 'disagree' and 'strongly disagree.'"

Both articles include quotes from some of the surveyed economists, who provide more insight into their support for competition in the market, as well as charts providing visual evidence of the survey's consensus.