Free Parking for All in Shopping Malls

Kevin Hasker and Eren Inci

MPRA Paper from University Library of Munich, Germany

Abstract: 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.

Keywords: land use; lot size; parking fee; parking requirements; shopping mall (search for similar items in EconPapers)
JEL-codes: D42 H21 L91 R41 R52 (search for similar items in EconPapers)
Date: 2012-01-16
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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