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The determinants of garage prices and their interaction with curbside regulation

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  • Albalate, Daniel
  • Gragera, Albert

Abstract

The market for parking is characterized by intrinsic distortions such as cruising in search of a parking space and garage market power. Theoretical studies stress that the price differential between curbside and garage parking fees is critical in addressing this inefficiency; yet, the interactions between the two have received little attention to date in the literature. By drawing on a new self-constructed database for all the garages in the city of Barcelona, we empirically explore the determinants of garage prices. Our results indicate that prices are mainly influenced by fixed and variable cost drivers, the dominance position of the garage in its surrounding market and the garage’s interaction with curbside parking. We also find that prices react to the scarcity of parking spaces in the street and to the curbside price fixed by the public authority.

Suggested Citation

  • Albalate, Daniel & Gragera, Albert, 2017. "The determinants of garage prices and their interaction with curbside regulation," Transportation Research Part A: Policy and Practice, Elsevier, vol. 101(C), pages 86-97.
    • Handle: RePEc:eee:transa:v:101:y:2017:i:c:p:86-97
    DOI: 10.1016/j.tra.2017.05.009
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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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    Cited by:

    1. 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.
    2. Albalate, Daniel & Gragera, Albert, 2020. "The impact of curbside parking regulations on car ownership," Regional Science and Urban Economics, Elsevier, vol. 81(C).
    3. 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.
    4. Gragera, Albert & Hybel, Jesper & Madsen, Edith & Mulalic, Ismir, 2021. "A model for estimation of the demand for on-street parking," Economics of Transportation, Elsevier, vol. 28(C).
    5. Hajime Seya & Kay W. Axhausen & Makoto Chikaraishi, 2020. "Spatial unconditional quantile regression: application to Japanese parking price data," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 65(2), pages 351-402, October.
    6. Samia Elattar & Hind Albalawi & Wafaa Saleh, 2023. "Parking Charges: Ingeniously Effective and Publicly Accepted in Riyadh?," Sustainability, MDPI, vol. 15(5), pages 1-11, March.
    7. Najmi, Ali & Bostanara, Maryam & Gu, Ziyuan & Rashidi, Taha H., 2021. "On-street parking management and pricing policies: An evaluation from a system enhancement perspective," Transportation Research Part A: Policy and Practice, Elsevier, vol. 146(C), pages 128-151.

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    More about this item

    Keywords

    Garage parking; Curbside parking; Price; Parking regulation;
    All these keywords.

    JEL classification:

    • D40 - Microeconomics - - Market Structure, Pricing, and Design - - - General
    • L90 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - General
    • L98 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Government Policy
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise
    • R42 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government and Private Investment Analysis; Road Maintenance; Transportation Planning
    • R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy

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