Open Collections

UBC Faculty Research and Publications

Garage and curbside parking competition with search congestion Inci, Eren; Lindsey, C. Robin

Abstract

We consider a parking market with privately operated parking garages, publicly operated curbside parking, and drivers who differ in parking duration. In equilibrium, long-term and short-term parkers can allocate themselves to garages and curbside parking in various ways. The equilibrium is generally inefficient because garage operators exercise market power, and drivers have to search for curbside parking which creates a search cost externality. A city planner can achieve the social optimum without regulating garage prices if it can charge differentiated curbside parking fees. Many cities still have parking meters that can only levy uniform fees and it is very costly to replace them. However, numerical results show that the efficiency loss due to uniform pricing is modest in most cases.

Item Metadata

Title
Garage and curbside parking competition with search congestion
Creator
Inci, Eren; Lindsey, C. Robin
Date Issued
2015-07-07
Description
We consider a parking market with privately operated parking garages, publicly operated curbside parking, and drivers who differ in parking duration. In equilibrium, long-term and short-term parkers can allocate themselves to garages and curbside parking in various ways. The equilibrium is generally inefficient because garage operators exercise market power, and drivers have to search for curbside parking which creates a search cost externality. A city planner can achieve the social optimum without regulating garage prices if it can charge differentiated curbside parking fees. Many cities still have parking meters that can only levy uniform fees and it is very costly to replace them. However, numerical results show that the efficiency loss due to uniform pricing is modest in most cases.
Subject
endogenous outside option; parking; price discrimination; search costs; spatial competition
Genre
Article
Type
Text
Language
eng
Date Available
2017-01-07
Provider
Vancouver : University of British Columbia Library
Rights
Attribution-NonCommercial-NoDerivs 2.5 Canada
DOI
10.14288/1.0042018
URI
http://hdl.handle.net/2429/55970
Affiliation
Operations and Logistics (OPLOG), Division of; Business, Sauder School of; Non UBC
Citation
Inci, E., & Lindsey, R. (2015). Garage and curbside parking competition with search congestion. Regional Science and Urban Economics, 54, 49-59.
Publisher DOI
10.1016/j.regsciurbeco.2015.07.003
Peer Review Status
Reviewed
Scholarly Level
Faculty
Copyright Holder
Elsevier
Rights URI
http://creativecommons.org/licenses/by-nc-nd/2.5/ca/
Aggregated Source Repository
DSpace

Item Media

Item Citations and Data

Rights

Attribution-NonCommercial-NoDerivs 2.5 Canada