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To pay or not to pay for parking at shopping malls - A rationale from the perspective of two-sided markets

Author

Listed:
  • Inga Molenda

    (Institute of Transport Economics, Muenster)

  • Gernot Sieg

    (Institute of Transport Economics, Muenster)

Abstract

A shopping mall is a meeting platform for retailers and their customers, and may therefore subsidize 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 subsidized. If customers generate high revenue, the mall operator will generally refrain from charging an entry fee, and offer free parking to its visitors. This result is shown in a model with variety-loving consumers and two competing malls at the end point of a Hotelling line on which their potential visitors, and thus the retailers’ customers, are located.

Suggested Citation

  • Inga Molenda & Gernot Sieg, 2017. "To pay or not to pay for parking at shopping malls - A rationale from the perspective of two-sided markets," Working Papers 23, Institute of Transport Economics, University of Muenster.
    • Handle: RePEc:mut:wpaper:23
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    References listed on IDEAS

    as
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    Cited by:

    1. Gokhan Guven & Eren Inci & Antonio Russo, 2017. "Apparent Competition in Two-Sided Platforms," CESifo Working Paper Series 6660, CESifo.
    2. Günter Knieps & Thomas Griese & André Grüttner & Oliver Rottmann & Hans-Wilhelm Schiffer & Gernot Sieg & David Stadelmann & Heiner Monheim, 2018. "Fahrverbote, City-Maut, kostenloser öffentlicher Nahverkehr: Wege aus dem Verkehrskollaps?," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 71(09), pages 03-22, May.
    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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    More about this item

    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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