How does this change driver behavior

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Reference no: EM13155407

Traditionally, taxi drivers were only paid by the mile. A couple of decades ago, Yellow cab experimented with paying the same per mile rate plus a fixed fee every time a customer got in the cab.

1. How does this change driver behavior?

2. Are cab companies better off?

3. Does the additional fixed fee mean that consumers are worse off?

Reference no: EM13155407

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