A little note on game theory

I know somewhat there have been many discussions about the applications of game theory to real world or another disciplines, so here is just a layman's view and a notebook for my studying the subject whose sharpness and spell have been luring me, though there may be a large number of my misunderstandings anywhere.

Every night on my way home, at a nearest station I see a number of taxis are in a line waiting for customers. Observed with care, they never seem to violate the line, much less cut in. Why are they so polite? Are there any contracts or arrangements to have them in order?

An economist says that it is an application of a normative analysis of cooperative game when the core is empty where for any back off outcome on which the players could agree, some coalitions are possible for the players to break down the agreement with measures and interests. The core instability comes from where (a) consumers have non-convex preferences or (b) firms have non-increasing marginal costs.

An example of (b): competition of taxis for passengers at a station.

The cost of service for one passenger is higher than the marginal cost of the second passenger. Core instability comes into being because of the excessive supply of taxis. This is because a driver who leaves his work with just one passenger could not compensate for his operating costs. Thus this may in turn lead an inefficient supply of taxis and a so-called market failure. It is necessary for the improvement to keep the taxis in a line and to limit them not to cut in by an arbitrator who not only deters the taxis from any coalitions but also imposes a fee in an uniform way bringing a fair outcome. To generalize, the role of an arbitrator is to play for regulating of coalitions among the players and for changing the rule in order to bring a stability when the core is empty.

But I fairly infrequently see some of taxis breaking the rule (deviation?) in a certain region, while we all passengers do not. For the reason above, the passengers are indifferent to getting any taxis, admitting that one wants to go home as early as possible.