Parking in the city

We integrate pat-king in a simple manner into the basic monocentric model. In equilibrium, the city divides into three zones. Closest to the CBD are parking lots, with residential housing further out. Residents contiguous to the parking lots walk to work. Those in the last band drive to a parking lot and then walk the remaining distance to the CBD. We first assume that parking is unattributed and subject to a common property resource problem. Then the social optimum configuration is identical to the equilibrium when parking lots are monopolistically competitively priced. That is, the optimum is decentralised by private ownership when operators maximise profits under competitive constraints. With attributed parking, the optimum is also attained in equilibrium, and entails higher welfare than unattributed parking.