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To Pay or Not to Pay for Parking at Shopping Malls: A Rationale from the Perspective of Two-sided Markets

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  • Inga Molenda
  • Gernot Sieg

Abstract

A shopping mall is a meeting platform for retailers and their customers, and may therefore subsidise one particular market side.We consider suburban malls as competitive bottlenecks because shops are mainly opened up by retail chains which operate in many malls, but whose customers visit only one suburban mall so as to save transport costs. If the consumer-to-shop externality is larger than the shop-to-consumer externality, parking is subsidised and if customers generate high revenue, the mall operator will offer free parking to its visitors. This result is shown in a model where two malls compete for variety-loving customers.

Suggested Citation

  • Inga Molenda & Gernot Sieg, 2018. "To Pay or Not to Pay for Parking at Shopping Malls: A Rationale from the Perspective of Two-sided Markets," Journal of Transport Economics and Policy, University of Bath, vol. 52(3), pages 283-28-297.
    • Handle: RePEc:tpe:jtecpo:2018:52:3:283--297
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    Cited by:

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    3. Chengxiang Zhuge & Chunfu Shao & Xia Li, 2019. "Empirical Analysis of Parking Behaviour of Conventional and Electric Vehicles for Parking Modelling: A Case Study of Beijing, China," Energies, MDPI, vol. 12(16), pages 1-21, August.

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    JEL classification:

    • L91 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Transportation: General
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise

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