Scheduling preferences, parking competition, and bottleneck congestion: A model of trip timing and parking location choices by heterogeneous commuters

Takayama, Yuki and Kuwahara, Masao (2016): Scheduling preferences, parking competition, and bottleneck congestion: A model of trip timing and parking location choices by heterogeneous commuters.

Abstract

This study examines the effects of location-dependent parking fees and time-varying congestion tolls on the behavior of heterogeneous commuters and their commuting costs. To this end, we develop a model of trip timing and parking location choices by heterogeneous commuters and characterize its equilibrium. By comparing the equilibrium with and without pricing policies, we obtain the following results: (1) without pricing policies, interactions among heterogeneous commuters yield an inefficient distribution of trip timing and parking locations; (2) imposing a parking fee and expanding parking capacity may concentrate the temporal distribution of traffic demand, thereby exacerbating traffic congestion and total commuting cost; (3) the social optimum is achieved by combining a parking fee with a congestion toll; and (4) the revenue obtained from pricing of parking and roads exactly equals the costs for optimal parking and bottleneck capacity; that is, the self-financing principle holds in the model.

• Item Type: MPRA Paper
• Language: English
• Keywords: scheduling preference; parking competition; bottleneck congestion; parking fee
• Subjects: D - Microeconomics > D6 - Welfare Economics > D62 - Externalities; H - Public Economics > H2 - Taxation, Subsidies, and Revenue > H23 - Externalities ; Redistributive Effects ; Environmental Taxes and Subsidies; 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; R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R4 - Transportation Economics > R48 - Government Pricing and Policy

References

Akamatsu, T. (2007) “Tradable network permits: A new scheme for the most efficient use of network capacity,” mimeograph.

Anderson, S. P. and de Palma, A. (2004) “The economics of pricing parking,” Journal of Urban Economics, Vol. 55, No. 1, pp. 1–20.

Arnott, R., de Palma, A., and Lindsey, R. (1990) “Economics of a bottleneck,” Journal of Urban Economics, Vol. 27, No. 1, pp. 111–130.

Arnott, R., de Palma, A., and Lindsey, R. (1991) “A temporal and spatial equilibrium analysis of commuter parking,” Journal of Public Economics, Vol. 45, No. 3, pp. 301–335.

Arnott, R., de Palma, A., and Lindsey, R. (1993) “A structural model of peak-period congestion: A traffic bottleneck with elastic demand,” American Economic Review, Vol. 83, No. 1, pp. 161–179.

Arnott, R., de Palma, A., and Lindsey, R. (1994) “The welfare effects of congestion tolls with heterogeneous commuters,” Journal of Transport Economics and Policy, Vol. 28, No. 2, pp. 139–161.

Arnott, R., Inci, E., and Rowse, J. (2015) “Downtown curbside parking capacity,” Journal of Urban Economics, Vol. 86, pp. 83–97.

Arnott, R. and Inci, E. (2006) “An integrated model of downtown parking and traffic congestion,” Journal of Urban Economics, Vol. 60, No. 3, pp. 418–442.

Arnott, R. and Inci, E. (2010) “The stability of downtown parking and traffic congestion,” Journal of Urban Economics, Vol. 68, No. 3, pp. 260–276.

Arnott, R. and Kraus, M. (1993) “The Ramsey problem for congestible facilities,” Journal of Public Economics, Vol. 50, No. 3, pp. 371–396.

Arnott, R. and Kraus, M. (1995) “Financing capacity in the bottleneck model,” Journal of Urban Economics, Vol. 38, No. 3, pp. 272–290.

Arnott, R. and Rowse, J. (2009) “Downtown parking in auto city,” Regional Science and Urban Economics, Vol. 39, No. 1, pp. 1–14.

Beesley, M. E. (1965) “The value of time spent in travelling: Some new evidences,” Economica, Vol. 32, No. 126, pp. 174–185.

van den Berg, V. A. C. and Verhoef, E. T. (2011) “Winning or losing from dynamic bottleneck congestion pricing? The distributional effects of road pricing with heterogeneity in values of time and schedule delay,” Journal of Public Economics, Vol. 95, No. 7-8, pp. 983–992.

Calthrop, E. and Proost, S. (2006) “Regulating on-street parking,” Regional Science and Urban Economics, Vol. 36, No. 1, pp. 29-48.

Doan, K., Ukkusuri, S., and Han, L. (2011) “On the existence of pricing strategies in the discrete time heterogeneous single bottleneck model,” Transportation Research Part B: Methodological, Vol. 45, No. 9, pp. 1483-1500.

Domencich, T. A. and McFadden, D. (1975) Urban Travel Demand: A Behavioral Analysis: North-Holland.

Fosgerau, M. and Lindsey, R. (2013) “Trip-timing decisions with traffic incidents,” Regional Science and Urban Economics, Vol. 43, No. 5, pp. 764–782.

Fosgerau, M. and de Palma, A. (2013) “The dynamics of urban traffic congestion and the price of parking,” Journal of Public Economics, Vol. 105, pp. 106–115.

Fosgerau, M. and Small, K. A. (2014) “Endogenous scheduling preferences and congestion,” Working Paper, University of California at Irvine.

Geroliminis, N. (2015) “Cruising-for-parking in congested cities with an MFD representation,” Economics of Transportation, Vol. 4, No. 3, pp. 156–165.

Glazer, A. and Niskanen, E. (1992) “Parking fees and congestion,” Regional Science and Urban Economics, Vol. 22, No. 1, pp. 123–132.

Gubins, S. and Verhoef, E. T. (2014) “Dynamic bottleneck congestion and residential land use in the monocentric city,” Journal of Urban Economics, Vol. 80, pp. 51–61.

Hendrickson, C. and Kocur, G. (1981) “Schedule delay and departure time decisions in a deterministic model,” Transportation Science, Vol. 15, No. 1, pp. 62–77.

Inci, E. (2015) “A review of the economics of parking,” Economics of Transportation, Vol. 4, No. 1-2, pp. 50–63.

Inci, E. and Lindsey, R. (2015) “Garage and curbside parking competition with search congestion,” Regional Science and Urban Economics, Vol. 54, pp. 49–59.

Keeler, T. E. and Small, K. A. (1977) “Optimal peak-load pricing, investment and service levels in urban expressways,” The Journal of Political Economy, Vol. 85, No. 1, pp. 1–25.

Kraus, M. (2003) “A new look at the two-mode problem,” Journal of Urban Economics, Vol. 54, No. 3, pp. 511–530.

Kraus, M. (2012) “Road pricing with optimal mass transit,” Journal of Urban Economics, Vol. 72, No. 2-3, pp. 81–86.

Kraus, M. and Yoshida, Y. (2002) “The commuter’s time-of-use decision and optimal pricing and service in urban mass transit,” Journal of Urban Economics, Vol. 51, No. 1, pp. 170–195.

Lindsey, R. (2004) “Existence, uniqueness, and trip cost function properties of user equilibrium in the bottleneck model with multiple user classes,” Transportation Science, Vol. 38, No. 3, pp.293–314.

Liu, W., Yang, H., Yin, Y., and Zhang, F. (2014a) “A novel permit scheme for managing parking competition and bottleneck congestion,” Transportation Research Part C: Emerging Technologies, Vol. 44, pp. 265–281.

Liu, W., Yang, H., and Yin, Y. (2014b) “Expirable parking reservations for managing morning commute with parking space constraints,” Transportation Research Part C: Emerging Technologies, Vol. 44, pp. 185–201.

Mohring, H. and Harwitz, M. (1962) Highway Benefit: An Analytical Framework: Northwestern University Press.

Newell, G. F. (1987) “The morning commute for nonidentical travelers,” Transportation Science, Vol. 21, No. 2, pp. 74–88.

Peer, S. and Verhoef, E. T. (2013) “Equilibrium at a bottleneck when long-run and short-run scheduling preferences diverge,” Transportation Research Part B: Methodological, Vol. 57, pp. 12–27.

Qian, Z. S., Xiao, F. E., and Zhang, H. M. (2011) “The economics of parking provision for the morning commute,” Transportation Research Part A: Policy and Practice, Vol. 45, No. 9, pp. 861-879.

Qian, Z. S., Xiao, F. E., and Zhang, H. M. (2012) “Managing morning commute traffic with parking,” Transportation Research Part B: Methodological, Vol. 46, No. 7, pp. 894-916.

Quarmby, D. A. (1967) “Choice of travel mode on the journey to work: Some findings,” Journal of Transport Economics and Policy, Vol. 1, No. 3, pp. 273–314.

Ramadurai, G., Ukkusuri, S. V., Zhao, J., and Pang, J. S. (2010) “Linear complementarity formulation for single bottleneck model with heterogeneous commuters,” Transportation Research Part B: Methodological, Vol. 44, No. 2, pp. 193–214.

Shoup, D. C. (2005) The High Cost of Free Parking: Planners Press.

Strotz, R. H. (1965) “Urban transportation parables,” in Margolis, J. ed. The Public Economy of Urban Communities: Resources for the Future, pp. 127–169.

Takayama, Y. (2015) “Bottleneck congestion and distribution of work start times: The economics of staggered work hours revisited,” Transportation Research Part B: Methodological, Vol. 81, No. 3, pp. 830–847.

Tseng, Y. Y. and Verhoef, E. T. (2008) “Value of time by time of day: A stated-preference study,” Transportation Research Part B: Methodological, Vol. 42, pp. 607–618.

Verhoef, E. T. (2007) “Second-best road pricing through highway franchising,” Journal of Urban Economics, Vol. 62, No. 2, pp. 337–361.

Vickrey, W. S. (1969) “Congestion theory and transport investment,” American Economic Review, Vol. 59, No. 2, pp. 251–260.

Vickrey, W. S. (1973) “Pricing, metering, and efficiently using urban transportation facilities,” Highway Research Record, Vol. 476, pp. 36–48.

Wada, K. and Akamatsu, T. (2013) “A hybrid implementation mechanism of tradable network permits system which obviates path enumeration: An auction mechanism with day-to-day capacity control,” Transportation Research Part E: Logistics and Transportation Review, Vol. 60, pp. 94–112.

Yang, H., Liu,W.,Wang, X., and Zhang, X. (2013) “On the morning commute problem with bottleneck congestion and parking space constraints,” Transportation Research Part B: Methodological, Vol. 58, pp. 106–118.

Yang, H. and Meng, Q. (2002) “A note on ”highway pricing and capacity choice in a road network under a build-operate-transfer scheme”,” Transportation Research Part A: Policy and Practice, Vol. 36, No. 7, pp. 659–663.

Zhang, X., Huang, H. J., and Zhang, H. M. (2008) “Integrated daily commuting patterns and optimal road tolls and parking fees in a linear city,” Transportation Research Part B: Methodological, Vol. 42, No. 1, pp. 38–56.

Zhang, X., Yang, H., and Huang, H. J. (2011) “Improving travel efficiency by parking permits distribution and trading,” Transportation Research Part B: Methodological, Vol. 45, No. 7, pp. 1018–1034.