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The reason why you can't find a taxi in the wet and why you should learn other working procedures from taxi drivers.

Camerer, Babcock, Loewenstein and Thaler (1997), in a promising document, state that the tax drivers' pay resilience in New York City (NYC) is positive and come to the conclusion that their offer behaviour corresponds to the desired income (with reference-dependent preferences). Replicating and extending the CBLT analyzer with complete cab ride information for all taxi cabins in New York for the five years 2009-2013.

In my view, the overall picture is clear: Driver response to unexpected and expected gains in revenue prospects tends to be positive. It is in line with the neo-classical optimization of labour provision and does not promote the reference-dependent preference scheme. My research is into the diversity between driver and labour elasticity and whether new driver behaviour differs from more skilled one.

While I find considerable disparity between the driver elasticity, the estimates of elasticity are generally favorable and seldom substantially so. In my opinion, new riders with lower elasticity are more likely to leave the sector, while riders who stay will quickly adapt to being better optimisers (have higher elasticity of labour offer that grows with experience).

"The Quarterly Journal of Economics, Band 130(4), Seiten 1975-2026, Why you Can't Find a Taxi in the Rain and Other Labor Supply Lessons from Cab Drivers".

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