Earlier quoted context omitted.
Isn't $200k the free market cost? The government isn't pocketing that money. That's the price you would expect from an asset that generates income with a limited supply. Edit: why am I down voted to max? The government limits supply but the medallions are still sold on the market.
No, the supply is artificially limited by the government; there's no free market involved. That $200k is paid to the government. (The claimed rationale for limiting the number of taxis is to reduce traffic. I would suspect the actual rationale is to favor the existing taxi businesses that already have licenses and don't want competition.)
The ratio of vehicles per person in Singapore is 0.18 (compare to about ~0.5 most places in the US). It's very easy to get a Taxi to any place not accessible by public transport. I would be astounded if there is any verifiable scientific study backing this claim.
[0] https://www.lta.gov.sg/content/dam/ltaweb/corp/PublicationsR... [1] https://en.wikipedia.org/wiki/List_of_U.S._states_by_vehicle...