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This paper presents a simple model of parking congestion focusing on drivers' search for a Vacant parking space in a spatially homogeneous metropolis. The mean density of vacant parking spaces is endogenous. A parking externality arises because individuals neglect the effect of their parking on this mean density. We examine stochastic stationary-state equilibria and optima in the model. Due to the model's nonlinearity, multiple equilibria may exist and the effects of parking fees are complex. Several extensions are discussed, including determining the social value of a particular parking information system. (C) 1999 Academic Press.
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