Many economic models seem to assume that consumers possess complete and accurate information with which to make educated decisions.  The reality is quite different; consumers normally shoot pretty much from the hip, resulting in garbled market signals

In San Francisco, city officials are trying to improve the woefully inefficient "parking market" by metering in a way that maximizes the information a consumer receives so that travelers can choose whether to drive or opt for alternative transportation.

SFPark is San Francisco’s experimental parking plan, to affect about 6,500 -- or approximately one quarter -- of the city's parking spots. Some cities manage their parking by carving out more parking  spaces; San Francisco is choosing to make its existing parking spaces "smarter."  Toward that goal, the city will install smart meters that feature technology that decreases or increases the price of the meter depending on demand: When everyone and their brother wants a spot, prices are higher. The duration of parking allowed may be trimmed or expanded depending on traffic flow, encouraging turnover during the busiest times of the day. Drivers will also be able to check parking availability via the Internet, thanks to built-in sensors.

SFPark allows potential municipal customers to go online to check parking availability and price. They can then decide to drive or bus it. The alternative we all know and love: Drive straight to your destination, and then spend time and money circling city blocks where your car has become a gas-swilling part of the congestion problem. SFPark also increases the ease of parking for drivers, expanding payment options to include credit cards and remote payments.  The program can also text drivers to warn them to add value to their meter in order to avoid a ticket.

Mayor Gavin Newsom told the San Francisco Chronicle that "The idea is to give people more choice, more convenience and to reduce congestion." Neither the concept of congestion pricing for parking nor the technology is new, but it is new to the U.S. Congestion pricing for traffic has been attempted in other cities, succeeding in some, like London, and facing hurdles in others, like New York. San Francisco will provide an interesting test of a congestion parking concept at work.