Free parking for all in shopping malls

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Hasker, Kevin and İnci, Eren (2014) Free parking for all in shopping malls. International Economic Review, 55 (4). pp. 1281-1304. ISSN 0020-6598 (Print) 1468-2354 (Online)

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Abstract

We show why a mall provides parking for free and embed the parking costs in the prices of the goods. Essentially, charging a parking fee to risk-averse customers means penalizing them for not finding their desired good. This result holds whether the mall has monopoly power or prices competitively, if there is parking validation, and if there is a trade-off between shopping and parking spaces. It is also the attainable social optimum. The equilibrium lot size is too small, yielding a rationale for minimum parking requirements. However, parking fees may be positive and lots may be too large in urban malls.
Item Type: Article
Uncontrolled Keywords: land use; lot size; parking fee; parking requirements; shopping mall
Subjects: H Social Sciences > HB Economic Theory
H Social Sciences > HD Industries. Land use. Labor > HD0101-1395.5 Land use
Divisions: Faculty of Arts and Social Sciences > Academic programs > Economics
Faculty of Arts and Social Sciences
Depositing User: Eren İnci
Date Deposited: 16 Dec 2014 11:59
Last Modified: 02 Aug 2019 11:17
URI: https://research.sabanciuniv.edu/id/eprint/24806

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