As we've seen, simple licensing which limits entry into an industry, even a monopolistically competitive industry, can be of great value to those in the industry. On occasion this can lead to strange partners.

    For example, in some cities groups opposed to excessive alcohol consumption will urge the city to fix the number of liquor licenses to the current number, or to at least slow the growth. It is usually very easy for such campaigns to gain the support of current holders of licenses since their licenses will become more valuable the more entry is limited.

    Likewise any move to remove such barriers will be vehemently opposed by those who currently benefit. Imagine what would happen if New York city suddenly make taxi medallions readily available to anyone. Current holder would suffer an instant loss of an asset worth over $200,000.

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