This paper explores the establishment of a flat rate for the taxicab service that
serves routes between the city and the airport in Seville. First, the advantages
and disadvantages of a flat rate are explained and why it may be an advisable
measure for tourist cities with a conflictive taxicab industry. In addition, by
using a methodology based on the estimation of average treatment effects, an
evaluation is made of the impact of the taxi flat rate on the probability of
passengers choosing a taxi for their city–airport transport needs. The main
conclusion is that the increased market transparency fostered by this urban
transport policy has led to an increase of almost 7 per cent in both the
probability of selection and the average revenues of taxi-drivers.
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