The time dimension of parking economics

A model of demand for parking, evolving over time, is proposed. The model features both extensive (whether to park) and intensive (for how long to park) margins of parking demand, allows multidimensional heterogeneity of parkers, and evolution of demand throughout the day. The author shows that the optimal price for parking is proportional to the rate of arrival of new parkers and is inversely related to the square of the occupancy rate, which is different from previously discussed pricing methods. The author shows that the primary purpose of pricing is to regulate departures, rather than arrivals, of parkers. The author also finds that asymmetric information about parkers’ characteristics does not prevent the parking authority from achieving the social optimum. A numerical example compares the optimal policy against the alternatives.


  • English

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  • Accession Number: 01608866
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Aug 4 2016 4:50PM