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100% of the time, companies will do what is either cheapest or stands to make them the most money in the long run. That's why you need regulations like minimum

100% of the time, companies will do what is either cheapest or stands to make them the most money in the long run. That's why you need regulations like minimum parking, otherwise companies would completely forgo parking if they could get away with it. So it really does mean that they won't build parking.

treis 6y ago
I dont think that's right. Nobody would build a suburban mall without parking. Nobody would go there since they wouldn't be able to park their car. Developers would weigh the cost of building parking against the benefit it provides. Some would still build lots of parking but others might not.
- kungtotte 6y ago
  Sure, you can't predict which way any given company will go in a situation like this, but my initial statement is still true. Minimizing costs and maximizing profits is always what companies do absent any external factors. Consider the following scenario: Walmart builds a new store with lots of parking, and across the road a Target opens and they gamble on having no parking since the Walmart lot is just across the street. Target saves a lot of money this way, so they're incentivised to not build parking. Imagine that Walmart knows this might happen, and so they choose not to build the parking because they don't want to subsidize Target's parking. Now two huge stores go up with no or minimal parking. It's a prisoner's dilemma brought on by lack of regulation.
  - treis 6y ago
    In your scenario Walmart wouldn't allow Target's customers to park in their lot. Target would have to weigh the costs/benefits and decide if they wanted their own lot. In some locations that decision might be no or a small lot. But they can't choose that because it's against the law.
    - cesarb 6y ago
      Or perhaps the first store would make the second store's clients pay for the parking. How this usually works: a store or shopping center has paid parking, but if you buy more than R$ XX at that store or shopping center, the parking fee is waived.
greenonions 6y ago
Companies will build things that people will pay for. If you can pay for a garage, you will have no problem finding one. If you don't want to pay for parking, you're not forced to.
CrazyStat 6y ago
If not building parking is going to tank the sales price they can get for their new development, which is the concern that was expressed, then they will build parking.

treis 6y ago

I dont think that's right. Nobody would build a suburban mall without parking. Nobody would go there since they wouldn't be able to park their car. Developers would weigh the cost of building parking against the benefit it provides. Some would still build lots of parking but others might not.

kungtotte 6y ago
Sure, you can't predict which way any given company will go in a situation like this, but my initial statement is still true. Minimizing costs and maximizing profits is always what companies do absent any external factors. Consider the following scenario: Walmart builds a new store with lots of parking, and across the road a Target opens and they gamble on having no parking since the Walmart lot is just across the street. Target saves a lot of money this way, so they're incentivised to not build parking. Imagine that Walmart knows this might happen, and so they choose not to build the parking because they don't want to subsidize Target's parking. Now two huge stores go up with no or minimal parking. It's a prisoner's dilemma brought on by lack of regulation.
- treis 6y ago
  In your scenario Walmart wouldn't allow Target's customers to park in their lot. Target would have to weigh the costs/benefits and decide if they wanted their own lot. In some locations that decision might be no or a small lot. But they can't choose that because it's against the law.
  - cesarb 6y ago
    Or perhaps the first store would make the second store's clients pay for the parking. How this usually works: a store or shopping center has paid parking, but if you buy more than R$ XX at that store or shopping center, the parking fee is waived.

greenonions 6y ago

Companies will build things that people will pay for. If you can pay for a garage, you will have no problem finding one. If you don't want to pay for parking, you're not forced to.

CrazyStat 6y ago

If not building parking is going to tank the sales price they can get for their new development, which is the concern that was expressed, then they will build parking.