A dynamic pricing parking system in urban area with a multi-period reservation demand

With the constantly increasing number of cars in the megacities, car parking has become one of serious problems nowadays, especially in congested traffic. Therefore, there have been numerous researches asserting that dynamic pricing mechanism could level parking demand properly. This research investigates the performance of a dynamic pricing mechanism which is manifested by Qiong Tiana, Li Yanga, Chenlan Wanga and Hai-Jun Huanga (2018), in different average prices aiming at maximizing the revenue for parking agencies. The multiple-period reservation model is conducted with linear demand functions. Factors are considered in our examination, including different demand elasticities and average prices. Our research constructs several scenarios to evaluate the performances of a dynamic pricing mechanism and thus compares with those under fixed price. Finally, we discover the promising revenue of the dynamic pricing mechanism under certain assumptions. And, future studies about dynamic pricing mechanism of parking system are discussed.