A Tale of Two Cities: An Examination of Medallion Prices in New York and Chicago

This paper examines the institution of taxicab medallions in two of the largest cities of the U.S.-New York and Chicago-and changes in the prices of those medallions during the period 2009-2016 (for New York City) and 2007-2016 (for Chicago). We document a drop of roughly 50% in the prices of these medallions in New York and roughly 80% in Chicago from their peak in 2013/2014 to the present. We also find that medallion prices are positively correlated with taxicab revenues (for New York City) and negatively correlated with proxies for the intensity of adoption of Uber and Lyft and interest rates in both cities.