A game-theory based parking pricing policy*

With the rapid increase of vehicles in China, traffic jams and parking problem have been becoming the major concern of the urban cities. A large number of studies have shown that parking fees, as economic leverage, can play a vital role in regulating the dynamic traffic demands. This paper proposes a pricing model that applies the principal-agent theory in parking pricing problem. A real-world case of a public parking lot in Shanghai is presented to show the reasonability and applicability of the policy.