The Time Dimension of Parking Economics

39 Pages Posted: 16 Jan 2015

See all articles by Roman Zakharenko

Roman Zakharenko

National Research University Higher School of Economics

Date Written: December 29, 2014

Abstract

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. I calculate the optimal price for parking and show that it is different from all existing pricing methods. I show that the primary purpose of pricing is to regulate departures, rather than arrivals, of parkers. I also find 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.

Keywords: Demand for parking, Endogenous duration of parking, Optimal pricing

JEL Classification: H42, R41, R48

Suggested Citation

Zakharenko, Roman, The Time Dimension of Parking Economics (December 29, 2014). Available at SSRN: https://ssrn.com/abstract=2549528 or http://dx.doi.org/10.2139/ssrn.2549528

Roman Zakharenko (Contact Author)

National Research University Higher School of Economics ( email )

Myasnitskaya street, 20
Moscow, Moscow 119017
Russia

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