Efficiency and equity analysis on parking reservation

Parking reservation, as an on-demand mobility service, can effectively address parking challenges. This paper examines the efficiency and equity of three parking reservation strategies: first-reserved-first-served (FRFS), auction and a hybrid strategy that combines both FRFS and auction. In the hybrid strategy, residents are given priority to make auction reservations initially, while the remaining spaces are allocated through FRFS reservations. Ultimately, a proportional allocation of spaces is achieved for both FRFS and auctions. Expected social cost minimization models are developed to determine the optimal parking quota for these strategies (FRFS, Auction and the hybrid strategy) and the optimal proportion allocated to the FRFS and auction in the hybrid strategy. Based on these works above, the solution properties of the proposed models are analytically explored. In addition, the Gini coefficient is used to investigate the equity of the above three reservation strategies. It is found that the auction strategy is the most efficient, but also the least fair. FRFS is the fairest but also the least efficient, and the hybrid is in the middle. The optimal parking quota increases with the value of time, the quality of road and parking services, but decreases with the quality of public transport services. In the hybrid strategy, increasing the allocation proportion to FRFS may lead to an increased or a decreased expected social cost, depending on the bidding price and FRFS price of parking spaces. The auction strategy is not always the most efficient for allocating parking spaces. In fact, it will become the worst strategy when the parking quota exceeds a certain critical value. Raising the lower bound of residents' incomes would narrow the gap between rich and poor, increase parking quotas, and generate higher parking revenues. The FRFS is more attractive to low-income residents, while the auction strategy favors higher-income residents.