I wrote a lot about this in my current job. If they have the range there’s no incentive. In fact, knowing your car is circling the block is a huge advantage to the average commuter.
The counter measure is rolling by the city: expect real time congestion pricing to be the norm in any metro area with a critical mass of self driving cars, say, 15-20 years from now.
First we will replace parking spots with more lanes, though, as they’ll be abandoned.
It will get worse for pedestrians at first, not better. Worse for traffic congestion too, unless cities think way ahead.