Roman Zakharenko gave a talk at the Tinbergen Institute

Roman Zakharenko, ICEF assistant professor, gave a talk on "The Time Dimension of Parking Economics" on the seminar "Spatial Economics Seminar" at the Tinbergen Institute on November 9.

Abstract:

A model of demand for parking, evolving over time, is proposed. The model features both extensive (whether to park) and intensive (for how long to park) margins of parking demand, allows multidimensional heterogeneity of parkers, and evolution of demand throughout the day. I calculate the optimal price for parking and show that it is different from previously discussed pricing methods. I show that the primary purpose of pricing is to regulate departures, rather than arrivals, of parkers. I also and that asymmetric information about parkers' characteristics does not prevent the parking authority from achieving the social optimum. A numerical example compares the optimal policy against the alternatives.

Keywords: Demand for parking, Endogenous duration of parking, Optimal pricing