An empirical analysis of retailer participation decisions in a downtown parking coupon program

Abstract

Parking coupon programs help downtown shopping areas attract consumers away from suburban shopping centers. Here we conduct an empirical analysis of retailer participation in such a program. Consistent with expectations, participation was higher for stores in shopping centers than for street-front retailers, for stores receiving subsidies for coupon purchase, and for stores selling comparison-shopping goods than for stores selling goods bought on one-stop, single-purpose or multipurpose-shopping trips. Participation also varied with numbers of competitors, chain membership, and store vintage. Apparently, participation is a local public good for downtown retailers and stores are inclined to free ride.