Here is a photo of parking prices I took at a parking lot in New York
I am surprised by the non-linear pricing structure. In general, the longer you stay, the less you pay, but there is a sharp increase in price per minute for anyone who stays between ½ hour and 1 hour. Here is a pretty graph to illustrate:
Why does this happen? Is there really so much extra demand to stay between ½ and 1 hour that the car park can afford to increase cost per minute from 25c to 31c (about 22%) without losing customers? Or is there another explanation?
1 comments:
Really, a non-linear pricing structure is probably to be expected. Perhaps I should have said non-monotonic (i.e. not always going in the same direction, but going up and down).
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