A model of valet parking

Official URL: http://risc01.sabanciuniv.edu/record=b1606765 (Table of Contents)

This thesis provides an explanation for the coexistence of regular free parking and paid valet parking in some shopping malls. The varying socio-economic levels of customers, their differing valuations of the goods sold at the mall, and an extra utility associated with valet service are the immediate reasons for the emergence of valet parking at the mall. We provide a theory based on the latter two reasons to analyze parking decisions of customers and the pricing strategy of shopping malls. Based on the sorting of different kinds of customers between valet and regular parking, various parking regimes can emerge at the mall including regular parking only, valet parking only, and mixed regimes of the two.