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Free Parking for All in Shopping Malls

  • Hasker, Kevin
  • Inci, Eren

We show why a shopping mall prefers to provide parking for free and embed the parking costs in the prices of the goods. This holds if the mall has monopoly power or prices competitively; if there is parking validation or a trade-off between shopping and parking spaces. It is also the second-best social optimum. Generally, the equilibrium lot size is too small, yielding a rationale for minimum parking requirements. In urban malls, parking fees may be positive because individuals can use the lot without intending to shop, and lots may become too large because of the trade-off between shopping and parking spaces.

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File URL: https://mpra.ub.uni-muenchen.de/35978/1/MPRA_paper_35978.pdf
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 35978.

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Date of creation: 16 Jan 2012
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Handle: RePEc:pra:mprapa:35978
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  1. Arnott, Richard & de Palma, Andre & Lindsey, Robin, 1991. "A temporal and spatial equilibrium analysis of commuter parking," Journal of Public Economics, Elsevier, vol. 45(3), pages 301-335, August.
  2. Arnott, Richard, 2006. "Spatial competition between parking garages and downtown parking policy," Transport Policy, Elsevier, vol. 13(6), pages 458-469, November.
  3. Richard Arnott & Tilmann Rave & Ronnie Schöb, 2005. "Alleviating Urban Traffic Congestion," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262012197, June.
  4. Glazer, Amihai & Niskanen, Esko, 1992. "Parking fees and congestion," Regional Science and Urban Economics, Elsevier, vol. 22(1), pages 123-132, March.
  5. Maria Arbatskaya & Kaushik Mukhopadhaya & Eric Rasmusen, 2007. "The Parking Lot Problem," Working Papers 2007-04, Indiana University, Kelley School of Business, Department of Business Economics and Public Policy.
  6. Arnott, Richard & Rowse, John, 2011. "Curbside Parking Time Limits," University of California Transportation Center, Working Papers qt3627c218, University of California Transportation Center.
  7. Shoup, Donald C., 1999. "The trouble with minimum parking requirements," Transportation Research Part A: Policy and Practice, Elsevier, vol. 33(7-8), pages 549-574.
  8. Richard Arnott & Eren Inci, 2008. "The Stability Of Downtown Parking And Traffic Congestion," Working Papers 200813, University of California at Riverside, Department of Economics, revised Nov 2008.
  9. Arnott, Richard & Inci, Eren, 2006. "An integrated model of downtown parking and traffic congestion," Journal of Urban Economics, Elsevier, vol. 60(3), pages 418-442, November.
  10. repec:ucp:bkecon:9781884829987 is not listed on IDEAS
  11. Shoup, Donald C., 2006. "Cruising for parking," Transport Policy, Elsevier, vol. 13(6), pages 479-486, November.
  12. Jean-Charles Rochet & Jean Tirole, 2014. "Platform Competition in Two-Sided Markets," CPI Journal, Competition Policy International, vol. 10.
  13. Calthrop, Edward & Proost, Stef, 2006. "Regulating on-street parking," Regional Science and Urban Economics, Elsevier, vol. 36(1), pages 29-48, January.
  14. van Ommeren, Jos & Wentink, Derk & Dekkers, Jasper, 2011. "The real price of parking policy," Journal of Urban Economics, Elsevier, vol. 70(1), pages 25-31, July.
  15. Shoup, Donald C., 2006. "Cruising for Parking," University of California Transportation Center, Working Papers qt55s7079f, University of California Transportation Center.
  16. Jean-Charles Rochet & Jean Triole, 2002. "Platform competition in two sided markets," LSE Research Online Documents on Economics 24929, London School of Economics and Political Science, LSE Library.
  17. Arnott, Richard & Rowse, John, 1999. "Modeling Parking," Journal of Urban Economics, Elsevier, vol. 45(1), pages 97-124, January.
  18. Simon P. Anderson & André de Palma, 2007. "Parking in the city," Papers in Regional Science, Wiley Blackwell, vol. 86(4), pages 621-632, November.
  19. Anderson, Simon P. & de Palma, Andre, 2004. "The economics of pricing parking," Journal of Urban Economics, Elsevier, vol. 55(1), pages 1-20, January.
  20. Drewianka, Scott, 2008. "Constrained labor supply and risk-aversion," Economics Letters, Elsevier, vol. 101(2), pages 130-133, November.
  21. Vickrey, William S, 1969. "Congestion Theory and Transport Investment," American Economic Review, American Economic Association, vol. 59(2), pages 251-60, May.
  22. Richard Arnott & John Rowse, 2007. "Downtown Parking in Auto City," Boston College Working Papers in Economics 665, Boston College Department of Economics.
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