The Pros & Cons of Surge Pricing
I was reading an article about how they are changing the parking program around Wrigley Field in Chicago. At Wrigley, they will be doubling the price from $2-an-hour to $4-an-hour as well as, extending the hours that these fees are applicable based on the event taking place. The timing change is especially important for events such a large concerts, in which the usual 10:00 pm end to paid parking will be extended to cover the event in entirety.
At first it seems as though there really is no positive benefits for those parking in these spaces. However, this surge pricing style, also used by Uber and Lyft, does benefit the user in a few different ways. It helps to keep the standard daily fees lower and keeps traffic moving during large events. It also promotes turnover for local businesses in the area.
While officials in Chicago feel this plan is going to be a success, truly only time will tell. What are your thoughts?
Sources:
http://www.nbcchicago.com/news/local/chicago-double-wrigley-field-parking-rates-414812353.html
http://knowledge.wharton.upenn.edu/article/the-unexpected-long-term-benefits-of-surge-pricing/
photo credit: Crawford Brian <a href="http://www.flickr.com/photos/78039748@N07/33114764096">Park</a> via <a href="http://photopin.com">photopin</a> <a href="https://creativecommons.org/licenses/by-nc-
