By Grant Kelly
Parking is often underpriced and expanding its capacity is expensive; universities need a better way of reducing congestion outside of building costly parking garages. Demand based pricing mechanisms, such as auctions, offer a possible solution to the problem by promising to reduce parking at peak times. However, faculty, students, and staff at universities have systematically different parking needs, leading to different parking valuations. In this study, I determine the impact university afﬁliation has on predicting bid values cast in three Dutch Auctions of on-campus parking permits sold at Chapman University in Fall 2010. Using clustering techniques crosschecked with university demographic information to detect afﬁliation groups, I ran a log-linear regression, ﬁnding that university afﬁliation had a larger effect on bid amount than on lot location and fraction of auction duration. Generally, faculty were predicted to have higher bids whereas students were predicted to have lower bids.
Advisor: Alison Hagy, Allan Collard-Wexler, Kent Kimbrough | JEL Codes: C38, C57, D44, R4, R49 | Tagged: Auctions, Parking, University Parking, Bidder Afﬁliation, Dutch Auction, Clustering