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The economics of parking provision for the morning commute

Author

Listed:
  • Qian, Zhen (Sean)
  • Xiao, Feng (Evan)
  • Zhang, H.M.

Abstract

In this paper, we study the economics of parking provision for the morning commute, where all the parking lots are owned and operated by private operators. The parking capacity allocations, parking fees and access times are considered in a parking market. First we solve the parking market equilibrium without regulatory intervention, revealing four types of competitive equilibrium. Only one of the four types of equilibrium, however, is found to be stable and realistic, and under it each parking area is preferred by the commuters during certain time periods. Compared to the case without parking choice, provision of parking through a competitive market is able to reduce commuters' travel cost and queuing delay, but it does not necessarily lead to the most desirable market outcome that minimizes social cost or commuter cost. This issue can be addressed through market regulations, such as price-ceiling, capacity-floor or capacity-ceiling, and a quantity tax/subsidy regulation. It is found that both price-ceiling and quantity tax/subsidy regulations can efficiently reduce both the system cost and commuter cost under certain conditions, and help ensure the stability of the parking market. Numerical examples are also provided to illustrate these findings and furthermore, how a price ceiling or a quantity tax/subsidy should be set in a parking market under realistic model parameters.

Suggested Citation

  • Qian, Zhen (Sean) & Xiao, Feng (Evan) & Zhang, H.M., 2011. "The economics of parking provision for the morning commute," Transportation Research Part A: Policy and Practice, Elsevier, vol. 45(9), pages 861-879, November.
  • Handle: RePEc:eee:transa:v:45:y:2011:i:9:p:861-879
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    References listed on IDEAS

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    1. Anderson, Simon P. & de Palma, Andre, 2004. "The economics of pricing parking," Journal of Urban Economics, Elsevier, vol. 55(1), pages 1-20, January.
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    8. Bifulco, Gennaro Nicola, 1993. "A stochastic user equilibrium assignment model for the evaluation of parking policies," European Journal of Operational Research, Elsevier, vol. 71(2), pages 269-287, December.
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    Citations

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    Cited by:

    1. Qian, Zhen (Sean) & Rajagopal, Ram, 2014. "Optimal occupancy-driven parking pricing under demand uncertainties and traveler heterogeneity: A stochastic control approach," Transportation Research Part B: Methodological, Elsevier, vol. 67(C), pages 144-165.
    2. Perdomo Calvo, Jorge Andrés, 2014. "An Economics Approach to Fixing the Fare of the Parking Lot Service in Bogotá Using Price Cap Regulation," MPRA Paper 79614, University Library of Munich, Germany.
    3. Arnott, Richard & Rowse, John, 2013. "Curbside parking time limits," Transportation Research Part A: Policy and Practice, Elsevier, vol. 55(C), pages 89-110.
    4. Xiao, Ling-Ling & Liu, Tian-Liang & Huang, Hai-Jun, 2016. "On the morning commute problem with carpooling behavior under parking space constraint," Transportation Research Part B: Methodological, Elsevier, vol. 91(C), pages 383-407.
    5. Wang, Wei (Walker) & Wang, David Z.W. & Zhang, Fangni & Sun, Huijun & Zhang, Wenyi & Wu, Jianjun, 2017. "Overcoming the Downs-Thomson Paradox by transit subsidy policies," Transportation Research Part A: Policy and Practice, Elsevier, vol. 95(C), pages 126-147.
    6. Nourinejad, Mehdi & Roorda, Matthew J., 2017. "Impact of hourly parking pricing on travel demand," Transportation Research Part A: Policy and Practice, Elsevier, vol. 98(C), pages 28-45.
    7. Liu, Wei & Geroliminis, Nikolas, 2016. "Modeling the morning commute for urban networks with cruising-for-parking: An MFD approach," Transportation Research Part B: Methodological, Elsevier, vol. 93(PA), pages 470-494.
    8. Xiao, Feng & Shen, Wei & Michael Zhang, H., 2012. "The morning commute under flat toll and tactical waiting," Transportation Research Part B: Methodological, Elsevier, vol. 46(10), pages 1346-1359.
    9. repec:eee:transb:v:103:y:2017:i:c:p:227-247 is not listed on IDEAS
    10. Chang, Ching-Ter & Chung, Cheng-Kung & Sheu, Jiuh-Biing & Zhuang, Zheng-Yun & Chen, Huang-Mu, 2014. "The optimal dual-pricing policy of mall parking service," Transportation Research Part A: Policy and Practice, Elsevier, vol. 70(C), pages 223-243.
    11. He, Fang & Yin, Yafeng & Chen, Zhibin & Zhou, Jing, 2015. "Pricing of parking games with atomic players," Transportation Research Part B: Methodological, Elsevier, vol. 73(C), pages 1-12.
    12. repec:eee:phsmap:v:483:y:2017:i:c:p:74-82 is not listed on IDEAS
    13. Jia, Zehui & Wang, David Z.W. & Cai, Xingju, 2016. "Traffic managements for household travels in congested morning commute," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 91(C), pages 173-189.
    14. Inci, Eren, 2015. "A review of the economics of parking," Economics of Transportation, Elsevier, vol. 4(1), pages 50-63.
    15. Yang, Hai & Liu, Wei & Wang, Xiaolei & Zhang, Xiaoning, 2013. "On the morning commute problem with bottleneck congestion and parking space constraints," Transportation Research Part B: Methodological, Elsevier, vol. 58(C), pages 106-118.

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