ABSTRACT
Curb parking spaces are much closer to private goods than to public goods. The right price will balance the demand for parking—which varies over time—with the fixed supply of curb spaces. Most cities deal with a shortage of curb parking by limiting the time allowed in curb spaces; that is, cities undercharge for curb parking and rely on time limits to create turnover. Market prices for curb parking will eliminate cruising and allocate the available spaces efficiently among parkers. Cruising and double parking are direct results of underpriced curb parking, and they greatly shrink the capacity of downtown streets. Market-clearing prices for curb parking present a classic conflict between economic efficiency and political popularity: the prices are necessary for efficient allocation, but they seem to be politically impossible. Market prices for crowded curb parking resemble congestion tolls for crowded freeways.
