Free Parking for All in Shopping Malls

Hasker, Kevin and Inci, Eren (2012): Free Parking for All in Shopping Malls.

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.

• Item Type: MPRA Paper
• Language: English
• Keywords: land use; lot size; parking fee; parking requirements; shopping mall
• Subjects: H - Public Economics > H2 - Taxation, Subsidies, and Revenue > H21 - Efficiency ; Optimal Taxation; L - Industrial Organization > L9 - Industry Studies: Transportation and Utilities > L91 - Transportation: General; R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R5 - Regional Government Analysis > R52 - Land Use and Other Regulations; R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R4 - Transportation Economics > R41 - Transportation: Demand, Supply, and Congestion ; Travel Time ; Safety and Accidents ; Transportation Noise; D - Microeconomics > D4 - Market Structure, Pricing, and Design > D42 - Monopoly

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