[sustran] Re: Driving Forces-further thoughts

[Roberto Verzola]

 >otherwise would, which I would guess is rare in the US.  I'm going to lay out
 >what I think the Neoclassical argument would be, and see if anyone is
 >convinced.
 >
 >The Shopping Center owners will build additional units of parking so long as
 >the marginal revenue they receive from that last customer is greater than the
 >marginal cost of providing the additional parking.  If the marginal revenue of
 >providing that last unit of parking is less than its marginal cost, a shopping

But mall parking areas are never built marginal unit by marginal unit,
in response to marginal revenues. Have you ever met a mall owner that
operates as you described? A mall builder makes a plan and decides how
much parking to build, and that's it. Then perhaps in several years or
so, they again decide if they need more parking or not.

Roberto Verzola