Pricing Public Parks

Admission prices are typically charged for entry to archaeological sites, museums and historic buildings, although rarely to public parks. This study explores the feasibility of introducing an entry charge to a public park in Naples, the Bosco di Capodimonte. It investigates different pricing options: a revenue-maximizing price, a discriminatory price to deal with equity, a 'sufficing' price to cover maintenance costs and a welfare economic social optimal price. The analysis documents the effect of different entry charges on visit numbers and revenue collected, and includes a cost-benefit analysis of the admission price policy. Total consumer surplus is also calculated for the different entry price scenarios.