> That pricing will not discourage too many people directly---because you price it exactly at a point where not too many people are discouraged.
Except that you're admitting to discouraging 15% of the customers. If there isn't enough parking for everyone then the shops much prefer people to be cruising around so that as soon as a space opens up there is someone to take it, rather than not showing up in the first place because they can't afford parking.
> (Interestingly, your mix of parkers would shift towards more people who value their time more than their money. Affluent customers are good customers!)
You can't actually make more money strictly by losing profitable customers, even if the customers you lose are below average customers.
> Like a congestion charge
It is like a congestion charge, which have exactly the same problems.
> Congestion charges worked out well for Singapore and London.
They keep poor people off the roads so rich people can use them, anyway.
> Charging for parking is relatively easy and does not require high-tech.
People don't use the high-tech stuff because it's harder. Either way you need something vs. the alternative where you don't need anything.
> Politically, it's a good idea to hand out the fees from parking at the same level as the people who can decide about it. So if local opposition could derail the scheme, you have to hand out the proceeds very locally. Otherwise you get the political dynamics you describe.
The problem is there are no "proceeds" -- the money is going to come from the local residents whether it's parking fees or taxes. The only way you can save anything is to have fewer parking spaces, which nobody is going to allow until after there is already a better alternative in place.
Except that you're admitting to discouraging 15% of the customers. If there isn't enough parking for everyone then the shops much prefer people to be cruising around so that as soon as a space opens up there is someone to take it, rather than not showing up in the first place because they can't afford parking.
> (Interestingly, your mix of parkers would shift towards more people who value their time more than their money. Affluent customers are good customers!)
You can't actually make more money strictly by losing profitable customers, even if the customers you lose are below average customers.
> Like a congestion charge
It is like a congestion charge, which have exactly the same problems.
> Congestion charges worked out well for Singapore and London.
They keep poor people off the roads so rich people can use them, anyway.
> Charging for parking is relatively easy and does not require high-tech.
People don't use the high-tech stuff because it's harder. Either way you need something vs. the alternative where you don't need anything.
> Politically, it's a good idea to hand out the fees from parking at the same level as the people who can decide about it. So if local opposition could derail the scheme, you have to hand out the proceeds very locally. Otherwise you get the political dynamics you describe.
The problem is there are no "proceeds" -- the money is going to come from the local residents whether it's parking fees or taxes. The only way you can save anything is to have fewer parking spaces, which nobody is going to allow until after there is already a better alternative in place.