Garage and Curbside Parking Competition with Search Congestion
Eren Inci () and
Charles Lindsey ()
ERSA conference papers from European Regional Science Association
In many downtown areas, privately operated parking garages compete with each other and with publicly operated curbside parking. Garages exercise market power by charging fees that vary with parking duration. Curbside space is scarce, and drivers have to search for it. This creates a congestion externality and enhances garages' market power. We show that with inelastic parking demand setting differentiated hourly curbside parking fees can support the social optimum without regulating garage fees. Second-best uniform curbside fees can also perform well. In general, first-best and second-best parking fees are sensitive to parking supply and demand conditions, and therefore should be tailored to local circumstances.
Keywords: endogenous outside option; parking; price discrimination; search costs; spatial competition (search for similar items in EconPapers)
JEL-codes: D62 L13 R41 R48 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-com and nep-tre
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (3) Track citations by RSS feed
Downloads: (external link)
Journal Article: Garage and curbside parking competition with search congestion (2015)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:wiw:wiwrsa:ersa14p344
Access Statistics for this paper
More papers in ERSA conference papers from European Regional Science Association Welthandelsplatz 1, 1020 Vienna, Austria.
Bibliographic data for series maintained by Gunther Maier ().