Modelling bidding behaviors in shared parking auctions considering anticipated regrets

Abstract

A novel behavioral model for auction-based shared parking market is proposed in this study, in which anticipated regrets are incorporated to investigate the interdependency between parking behaviors and psychological factors. Two types of participants’ anticipated regrets about winning and losing, which affect the bid prices for parking, are first considered in the proposed model. Four goals of normative, hedonic, gain, and economical are developed from the conceptional goal-framing theory to address the motivational explanation for participants’ behaviors of changing bids. Welfare losses induced by these goal frames are further investigated and simulated. Results show that the normative goal and the combination of the gain goal and the economical goal are recognized as preferred goals for the shared parking auction market. Managerial implications of setting a market entry threshold to exclude certain participants and guiding participants to change from diverse goals to preferred goals are proposed to help reduce welfare loss for sustainable development.