Abstract
Parking Management Units (PMU) at the vast majority of university campuses in the United States represent a self-sustaining auxiliary unit. Given the decline in state financial support for many higher education institutions, PMUs are increasingly being pressured to maximize revenue while at the same time managing what is very often perceived by users as a public good. Maximization of revenue requires a clear understanding of price sensitivity across target markets. This is especially true in instances where substitutable products offered by a single purveyor exist, such as different types of parking permits offered by a single institution. The primary objective of this research is to assess the price sensitivity of various target markets with respect to university parking at a mid-sized, state-funded university located in the Inland Northwest of the United States (University of Idaho). Utilizing data collected from a conjoint survey of administrators, faculty, staff, and students, price sensitivity is assessed by estimating the demand function for various types of parking permits. Furthermore, the degree of substitutability between various permits types is evaluated by calculating cross-price elasticity of demand. Results from this research can provide managers with insight regarding the pricing dynamics in a university parking setting and allow for more efficient pricing of parking permits.