Dynamic pricing was first tested in Pittsburgh in 2013, when Mark Fichman and Stephen Spear, both professors at Carnegie Mellon University’s [CMU] Tepper School of Business, designed a pilot program to see if dynamic pricing would make it easier to park near the university.
Using data they gathered, Fichman and Spear started submitting requests for rate adjustments to PPA every month to balance the supply and demand for parking on four streets adjacent to CMU.
“[If the] price is too low … the parking gets all filled up and basically you arrive there and you can’t park,” Fichman said. “If the price is too high, no one parks there. So finding the right price is kind of key.”