June 16, 2019

Million Dollar Taxis

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I was in New York in October 2011 and read in the Times that two New York taxi medallions – aluminium plates that grant the right to operate a yellow cab – recently changed hands for $1 million each.

The famous yellow taxicabs of New York City.

Image via Wikipedia

This is the highest recorded sale since the first medallions were issued in 1937. At that time the going price was $10 ($157 in current prices).

There are only 13,237 medallions in the city and some owners lease their medallions out 24 hours a day.

My wife asked me why anyone would pay $1 million for a medallion.I told her I would ask my students.

Do you think buying a taxi medallion for $1m is a sound business decision?