ABSTRACT
Parking is all about space, time, and money, and it is perhaps the most spatial of all economic activities. Market prices for parking therefore draw carpools and short-term parkers to the more convenient central spaces, while solo drivers and long-term parkers migrate to the cheaper peripheral spaces. The model of parking location resembles the classic monocentric model of housing location. Demand-responsive prices for curb parking resemble spot prices for land. Charging fair-market prices for curb parking is a better solution than either of the alternative policies cities tried in the early twentieth century—free curb parking or no curb parking. Market prices tend to allocate parking spaces quite efficiently. The most convenient parking spaces are occupied by carpoolers, short-term parkers, those who have difficulty walking, and those who place a high value on saving time. The essence of parking enforcement is thus economic, and it is futile to rely on rules absent economic incentives.
