Optimization of On-Street Parking Charges Based on Price Elasticity of the Expected Perceived Parking Cost

Jun Li, Sifan Wu and Xiaoman Feng
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Jun Li: School of Intelligent Systems Engineering, Sun Yat-sen University, Guangzhou 510000, China
Sifan Wu: School of Intelligent Systems Engineering, Sun Yat-sen University, Guangzhou 510000, China
Xiaoman Feng: School of Intelligent Systems Engineering, Sun Yat-sen University, Guangzhou 510000, China

Sustainability, 2021, vol. 13, issue 10, 1-13

Abstract: Price discrimination is widely employed to regulate on-street parking behaviors to provide better service to users, and the prices are usually set according to the occupancy of parking spaces without direct consideration of user perception. A binary logit-style choice model is built to describe the parking choice between on-street parking and off-street parking. A new index, named the price elasticity of expected perceived parking cost, is proposed to evaluate users’ response to parking charge. Based on the theory of second-degree price discrimination, three user types are defined according to the parking duration, namely, the preferred users, the neutral users, and the non-preferred users. The optimized parking prices are calculated by the proposed index. A case study of Guangzhou’s on-street parking is presented. It is found that the current pricing scheme for Type-I Zones (High Demand Zones) is reasonable, while the pricing scheme for the Type-II Zones (Low Demand Zones) does not achieve the objectives of usage optimization of on-street parking spaces. An optimized price scheme for the Type-II Zones is proposed to achieve the usage optimization of on-street parking spaces for short-term parking.

Keywords: on-street parking; expected perceived cost; price elasticity; second-degree price discrimination (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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