Airport taxi service regulation: An analysis of an exclusive contract: 1. Introduction 2. Taxi service regulation in Honolulu and at Honolulu International Airport (HIA) 3. Taxi service quality at HIA 4. Taxi fares at HIA 5. Deadheading and economic efficiency 6. Benefits of exclusive taxi service 7. conclusion Acknowledgements Notes References

Taxt service at a number of major airports is supplied by one taxi company under an exclusive contract with the airport operating authority. Conventional wisdom suggests that airport taxi service produced under exclusive contract is socially inefficient. This was found to be true at the Dallas/Fort Worth Airport. In this paper we analyze the exclusive airport taxi service at Honolulu International Airport as a case study. At Honolulu International Airport, the terms of the exclusive airport taxi service contract are far less restrictive than those at Dallas/Fort Worth. Our analysis indicates that exclusive airport service can provide high quality service, reasonable prices and revenues to finance airport service We conclude that is not the exclusivity, but rather the terms of the contract and the circumstances specific to each market that determines which system is best for a particular place.