Abstract
We study the causal effects of the complete deregulation of the Finnish taxi market, where entry restrictions and national fare ceilings were simultaneously abolished in 2018. Using a regional policy discontinuity and combining fare data with administrative firm and worker-level registers, we estimate the impact of deregulation on prices, market structure, and driver outcomes. Posted fares increased and became substantially more dispersed, but consumers choose lower-priced providers when available. Entry expanded sharply in large regions, reducing average firm revenue and profitability. In contrast, small and medium-sized regions experienced fare increases without meaningful entry, and firm profits declined despite higher prices. To interpret these heterogeneous effects, we develop a model of taxi markets with economies of scale in matching and platform competition.