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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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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
Date of revision:
Handle: RePEc:pra:mprapa:35978
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  1. Arnott, Richard & Rowse, John, 1999. "Modeling Parking," Journal of Urban Economics, Elsevier, vol. 45(1), pages 97-124, January.
  2. Jos van Ommeren & Derk Wentink & Jasper Dekkers, 2009. "The Real Price of Parking Policy," Tinbergen Institute Discussion Papers 09-083/3, Tinbergen Institute.
  3. 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.
  4. Rochet, Jean-Charles & Tirole, Jean, 2003. "Platform Competition in Two-Sided Markets," IDEI Working Papers 152, Institut d'Économie Industrielle (IDEI), Toulouse.
  5. Edward Calthrop & Stef Proost, 2002. "Regulating on-street parking," Energy, Transport and Environment Working Papers Series ete0202, KU Leuven, Department of Economics - Research Group Energy, Transport and Environment.
  6. Richard Arnott & Tilmann Rave & Ronnie Schöb, 2005. "Alleviating Urban Traffic Congestion," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262012197, December.
  7. Vickrey, William S, 1969. "Congestion Theory and Transport Investment," American Economic Review, American Economic Association, vol. 59(2), pages 251-60, May.
  8. Drewianka, Scott, 2008. "Constrained labor supply and risk-aversion," Economics Letters, Elsevier, vol. 101(2), pages 130-133, November.
  9. Jos van Ommeren & Derk Wentink, 2010. "The (Hidden) Cost of Employer Parking Policies," Tinbergen Institute Discussion Papers 10-048/3, Tinbergen Institute.
  10. Arnott, Richard & Rowse, John, 2009. "Curbside Parking Time Limits," University of California Transportation Center, Working Papers qt21p8f8b2, University of California Transportation Center.
  11. 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.
  12. Richard Arnott & Eren Inci, 2005. "An Integrated Model of Downtown Parking and Traffic Congestion," NBER Working Papers 11118, National Bureau of Economic Research, Inc.
  13. Shoup, Donald C., 2006. "Cruising for Parking," University of California Transportation Center, Working Papers qt55s7079f, University of California Transportation Center.
  14. Anderson, Simon P. & de Palma, Andre, 2004. "The economics of pricing parking," Journal of Urban Economics, Elsevier, vol. 55(1), pages 1-20, January.
  15. repec:ucp:bkecon:9781884829987 is not listed on IDEAS
  16. Richard Arnott, 1990. "A Temporal and Spatial Equilibrium Analysis of Commuter Parking," Discussion Papers 884, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
  17. Glazer, Amihai & Niskanen, Esko, 1992. "Parking fees and congestion," Regional Science and Urban Economics, Elsevier, vol. 22(1), pages 123-132, March.
  18. 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.
  19. Arnott, Richard & Rowse, John, 2009. "Downtown parking in auto city," Regional Science and Urban Economics, Elsevier, vol. 39(1), pages 1-14, January.
  20. Arnott, Richard, 2006. "Spatial competition between parking garages and downtown parking policy," Transport Policy, Elsevier, vol. 13(6), pages 458-469, November.
  21. Shoup, Donald C., 2006. "Cruising for parking," Transport Policy, Elsevier, vol. 13(6), pages 479-486, November.
  22. Simon P. Anderson & André de Palma, 2007. "Parking in the city," Papers in Regional Science, Wiley Blackwell, vol. 86(4), pages 621-632, November.
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