Thoughts on business school, economics, NC State, and everyday life from an economist at NC State's business school
Thursday, March 15, 2012
Why are parking spaces so hard to find?
Obvious answer: the price is too low. Today's NYT reports an interesting experiment from (of all places) San Francisco (not usually a bastion of free market thinking). SanFran has applied technology that allows meter prices to vary depending on demand. The idea is to have one spot open on each block all the time so that drivers do not clog the streets and generate additional CO2 emissions cruising in search of an empty spot. Prices fall in areas with lots of spots and rise in those with no spots.
Steve Allen is Associate Dean for Graduate Programs and Research in the College of Management at NC State University. He has appointments in the Department of Economics as well as the Department of Management, Innovation, and Entrepreneurship. Steve also is a Research Associate of the National Bureau of Economic Research, a non-profit research organization located in Cambridge, Mass.