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July 11, 2007

Comments

Cindy Campbell

Blake,
If it's any consolation at all...I'm still having trouble getting through Shoup's book as well!
Glad I stumbled upon your blog. Quite a find!
See you in Dallas.

-Cindy Campbell

Keypeoscice


What this country needs is a dime that will buy a good five-cent bagel.


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http://jamellaraqj.easyjournal.com

jim ward

Urban designer here. We're all advised to muscle through Don Shoups treatise on Free Parking. We're missing the boat with our perspective that "parking-my-SUV-is-my-RIGHT!". We've got to begin making drivers increasingly aware of the TRUE cost of automobiles, paving, fossil fuels, suface parking lots, and driving. Drivers need more accurate cues about costs ; much like water from our taps which also fails miserably to reflect its TRUE cost. Raise parking fees, raise the gas tax, institute congestion pricing, and get people out of the suburbs and nearer public transit and thier places of employment !

Peter Mitchell

Can't believe I spent my Friday night reading about parking. This is good stuff. You should be writing more.

Friedrich

Blake,

surely norms will increase product adoption, which would benefit certain companies. But consider that many firms in this business only win contracts by developing new methods and products. In a highly competitive market you are not looking out to let your competitors catch up, unless, as you mentioned before, they apply to your own standards and norms.

As soon as there have been agreements about certain standards the competition will start to mainly work over the price mechanism and everyone would try to win the contract by being the cheapest, because the standards will limit their possibility of achieving a competitive advantage through invention. The result in the long run would be that many people would try getting cheaper and cheaper by cutting costs.

A further danger in the short term is that the market-entry barriers could sink drastically which again would harm the established companies through new cheap competition. Not to mention the more of administration costs.

I agree that the marketplace would grow in the short term, but in the long term only large companies would be able to compete on the basis of economies of scale. Small companies would eventually leave the market, which then would shrink more and more towards an oligopoly or even a monopoly. (Compare Microsoft and their unwillingness to allow other companies to use their source codes)

Now this all sounds very negative and this is an exaggerated view.
I agree that certain norms and values are essential, but a free market economy is to regulate itself, without interference.

Blake

Friedrich,

I think your comments are good. I used the DVD-format example to illustrate the value to the consumer in having a standard; the equivalent in parking would probably be like having a standard for the size of a parking space (for which some standards do exist in parking).

I'm not sure that I agree with your statement that having standards slows down invention. Rather I would argue that having standards lead to an increase in product adoption, which in turn reveals the size of a marketplace. And when that marketplace is sufficiently large then invention and innovation will surely follow. So perhaps in the short term there is slowed invention - as you suggest - but in the long term the standards are beneficial to all involved.

For an industry like parking where we have very few standards, variable management practices, and inappropriate planning metrics (as Dr. Shoup’s book demonstrates) then I think as an industry we can benefit more by setting some standards today... and I am confident that technological advancement will continue provide innovation and invention in parking tomorrow.

Friedrich Hubel

Just to pick up one of your examples, I'm not sure if you can compare new DVD-formats with parking methods. For DVD's you always need some device to run them, for parking you only need a car. the car doesn't care how you pay, whereas the DVD-player will only play supported formats. By having some standard you are always limiting or slowing down invention (compare the discussion about the 3G-licences and the UMTS rights, where european companys had payed enourmes amounts to get a technology which was out of date by the time it was to be installed, which did not prevent them from blocking new technology in order to get at least some ROI). In terms of the different formats, it makes much more sense having DVD-players which run both/all. Especially since the product life cycle of such data storage has decreased in recent years, and a battle between the standards both harms the industry as well as the consumers. But to come back to parking: standards would surely benefit data analysis, but would also have a huge negative impact on the market, because the impuls for innovation and almost every competitive advantage (excl. service) would diminish. Therefore we would have to weigh out which advantages or disadvantages would result out of such actions.

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