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“Misinformation and Misperception in the market for parking”

Author

Listed:
  • Daniel Albalate

    (Universitat de Barcelona, Departament d’Estadística, Econometria i Economia Aplicada, Avda. Diagonal 690, 08034)

  • Albert Gragera

    (Technical University of Denmark, Produktionstorvet Building 426, 2800 Kgs.Lyngby)

Abstract

This article studies the level of knowledge and information held by drivers in the car parking market. By drawing on a survey conducted with 576 garage customers in Barcelona, we provide new evidence on the market frictions produced by the misinformation and misperception of drivers searching for parking spaces. We identify the factors that aggravate/mitigate misinformation and misperception, and examine how they affect the functioning of the parking market, damaging market competition, undermining effective regulatory actions and exacerbating negative externalities. Our evidence shows that drivers’ misperceptions increase cruising-for-parking and its consequences: congestion, pollution and accidents.

Suggested Citation

  • Daniel Albalate & Albert Gragera, 2018. "“Misinformation and Misperception in the market for parking”," IREA Working Papers 201812, University of Barcelona, Research Institute of Applied Economics, revised Jun 2018.
    • Handle: RePEc:ira:wpaper:201812
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    File URL: http://www.ub.edu/irea/working_papers/2018/201812.pdf
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    References listed on IDEAS

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    1. Kobus, Martijn B.W. & Gutiérrez-i-Puigarnau, Eva & Rietveld, Piet & Van Ommeren, Jos N., 2013. "The on-street parking premium and car drivers' choice between street and garage parking," Regional Science and Urban Economics, Elsevier, vol. 43(2), pages 395-403.
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    16. repec:ucp:bkecon:9781884829987 is not listed on IDEAS
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    Cited by:

    1. Zhou, Xizhen & Lv, Mengqi & Ji, Yanjie & Zhang, Shuichao & Liu, Yong, 2023. "Pricing curb parking: Differentiated parking fees or cash rewards?," Transport Policy, Elsevier, vol. 142(C), pages 46-58.

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    More about this item

    Keywords

    Parking; imperfect information; misperception; search cost; cruising. JEL classification:D82; D62; L15; R41; R48.;
    All these keywords.

    JEL classification:

    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise

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