Pushing towards shared mobility

Abstract

This paper provides a theoretical argument for preferential treatment of shared vehicles (SV) over private ones by municipal parking authorities. When all parked vehicles are treated equally, multiple equilibria may exist: (i) a “private” one, in which travellers are hesitant to switch to SV because the latter are hard to find, and (ii) a “shared” equilibrium, in which travellers use shared mobility because the city is saturated with vacant SV. The latter equilibrium, if it exists, is shown to yield higher welfare. Municipal parking discounts for SV reduce the amount of investment required for a “big push” towards the shared equilibrium, or even make it the only equilibrium.