> You can compute the present value of the total profit you can expect to earn
This isn't what we're talking about here. That's the equilibrium market price of the medallion, but the person I was responding to was saying that the overinflation due to supply restriction through gov't policy (i.e. medallions) was what was causing market value to diverge from "true" value. The fact that his goal is basically unreachable is sort of my point: his definition of "true" involves an ideal world in which taxis are optimally regulated.
This isn't what we're talking about here. That's the equilibrium market price of the medallion, but the person I was responding to was saying that the overinflation due to supply restriction through gov't policy (i.e. medallions) was what was causing market value to diverge from "true" value. The fact that his goal is basically unreachable is sort of my point: his definition of "true" involves an ideal world in which taxis are optimally regulated.