PTP #1

From Walter Williams

Many shopping centers provide zero price parking for their clients. Some have argued that such policy leads to inefficient allocation of resources since to ensure sufficient parking for center clientele, space must be provided for “freeloaders” who shop at stores near the center.

Who gains from the zero price parking? How?

Source: Walter E. Williams, “Economics 811 Questions,” George Mason University, http://walterewilliams.com/courses/811questions/

Topics: price-theory , externalities , property-rights