Free Parking for All in Shopping Malls

Sabancı University Working Paper No. 2010/0004

47 Pages Posted: 11 Feb 2012

See all articles by Kevin Hasker

Kevin Hasker

Bilkent University

Eren Inci

Sabanci University

Date Written: February 10, 2012

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.

Keywords: land use, lot size, parking fee, parking requirements, shopping mall

JEL Classification: D42, H21, L91, R41, R52

Suggested Citation

Hasker, Kevin and Inci, Eren, Free Parking for All in Shopping Malls (February 10, 2012). Sabancı University Working Paper No. 2010/0004, Available at SSRN: https://ssrn.com/abstract=2002620 or http://dx.doi.org/10.2139/ssrn.2002620

Kevin Hasker

Bilkent University ( email )

Eren Inci (Contact Author)

Sabanci University ( email )

Orhanli-Tuzla, 34956 Istanbul
Turkey

HOME PAGE: http://myweb.sabanciuniv.edu/ereninci/

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
213
Abstract Views
1,546
Rank
259,350
PlumX Metrics