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jerryking : underpricing   4

How Technology Will Solve Cities’ Parking Nightmare - The Experts - WSJ
Apr 21, 2017

as Prof. Donald Shoup has explained in his book, The High Cost of Free Parking, city officials dramatically underprice public parking relative to its market value, leading people to drive when they might otherwise have taken mass transit, walked, cycled or carpooled. San Francisco in 2010 had nearly 450,000 parking spaces, over half of which were free street spots. Free or low-cost street parking, either metered or permitted for residents, effectively subsidizes driving.

Underpricing parking not only leads to more car use, but also to more driving as people cruise around looking for parking, contributing to pollution, traffic congestion and greenhouse gas emissions. .....The coming revolution in autonomous cars can accelerate this trend. As Uber’s Chief Product Officer Jeff Holden recently explained at Columbia’s Center on Global Energy Policy, displacing the need for drivers will make it far more economical to move about with self-driving shared cars than to own a car—and that does not include the opportunity cost of driving, as riders will be able to use time en route to work, read or sleep.

Technology can also make carpooling far more efficient by better connecting riders going to and from the same place, further reducing cars on the road. Roughly 50% of Uber’s rides in San Francisco and 25% globally are now Uber Pool, according to Mr. Holden. Combining ride sharing with car sharing could cut the number of cars on the road—and that need to be parked—by 80% in major cities such as New York, according to MIT research.

With shared autonomous vehicles, there would be little need to park cars in downtown urban areas. Rather, autonomous vehicles could travel to garages on the outskirts of town to be recharged, cleaned and maintained.
parking  cities  Uber  UberPool  underpricing  ride_sharing  sharing_economy  opportunity_costs  autonomous_vehicles  high-cost 
april 2017 by jerryking
Underpricing risky business
February 1, 2013 | G&M report on Business pg B2 |by David Parkinson.

As energy and mining reserves have become increasingly expensive to find in other, more stable parts of the world, Africa's dangers have been glossed over in the quest to cash in on the continent’s still relatively undeveloped resources. Companies have been ignoring the risky reality, and investors have been underpricing it...Africa's significant growth potential has generated optimism, however, the geopolitical risks facing investors in Africa remain, for the most part, underestimated.”
The biggest threat to business in Africa, he argues, is “re1igious/ ideological militancy"--especially from Islamist/jihadist groups - which he says “has been vastly underestimated, and will pose significant risks to foreign investors in much of Africa."
He believes companies and their investors are underpricing the risks of doing business in Aŕrica, including rising security and insurance costs and cant project delays that could come from security threats, military conflicts or regime changes....Until the market starts pricing risk into African resource investments before a crisis forces the realization upon it, there will be little incentive for companies to seek less risky and less corrupt places to put their money.
And there will be more harsh and costly awakenìngs for investors who are themselves willfully blind to the risks.
underpricing  risks  Africa  natural_resources  political_risk  geopolitics  Mali  war  underestimation  frontier_markets  corruption  mining  mispricing  Islamists  jihadis  willful_blindness 
february 2013 by jerryking
Spillonomics - Underestimating Risk -
May 31, 2010 |NYT | By DAVID LEONHARDT. The people running BP
did a dreadful job of estimating the true chances of events that seemed
unlikely — and may even have been unlikely — but that would bring
enormous costs....We make two basic — and opposite — types of mistakes.
When an event is difficult to imagine, we tend to underestimate its
likelihood. This is the proverbial black swan...On the other hand, when
an unlikely event is all too easy to imagine, we often go in the
opposite direction and overestimate the odds.
unimaginable  BP  risk-taking  risk-assessment  oil_spills  mistakes  black_swan  underestimation  underpricing  unthinkable  overestimation  dual-consciousness  frequency_and_severity  improbables  disasters  disaster_preparedness  imagination  low_probability 
june 2010 by jerryking

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