Scheduling preferences, parking competition, and bottleneck congestion: A model of trip timing and parking location choices by heterogeneous commuters

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Abstract This study examines the effects of a time-varying congestion toll and a location-dependent parking fee on the behavior of heterogeneous commuters and their commuting costs. To this end, we develop a model of departure time and parking location choices by heterogeneous commuters and characterize its equilibrium. By comparing the equilibrium with and without pricing policies, we obtain the following results: (1) imposing a parking fee and expanding parking capacity may concentrate the temporal distribution of traffic demand, thereby exacerbating traffic congestion; (2) the expansion of parking capacity does not necessarily lead to a Pareto improvement when a parking fee is not imposed; (3) the social optimum is achieved by combining a parking fee with a congestion toll; and (4) the revenue obtained from pricing of roads and parking exactly equals the costs for optimal bottleneck and parking capacities, respectively; that is, the self-financing principle holds separately for bottleneck capacity and parking capacity.

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