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Uncovering the Distribution of Motorists' Preferences for Travel Time and Reliability

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Author Info
Kenneth A. Small
Clifford Winston
Jia Yan

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Abstract

We apply recent econometric advances to study the distribution of commuters' preferences for speedy and reliable highway travel. Our analysis applies mixed logit to combined revealed and stated preference data on commuter choices of whether to pay a toll for congestion-free express travel. We find that motorists exhibit high values of travel time and reliability, and substantial heterogeneity in those values. We suggest that road pricing policies designed to cater to such varying preferences can improve efficiency and reduce the disparity of welfare impacts compared with recent pricing experiments. Copyright The Econometric Society 2005.

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File URL: http://hdl.handle.net/10.1111/j.1468-0262.2005.00619.x
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Publisher Info
Article provided by Econometric Society in its journal Econometrica.

Volume (Year): 73 (2005)
Issue (Month): 4 (07)
Pages: 1367-1382
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Handle: RePEc:ecm:emetrp:v:73:y:2005:i:4:p:1367-1382

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  1. Yin-Yen Tseng, 2004. "A meta-analysis of travel time reliability," ERSA conference papers ersa04p415, European Regional Science Association. [Downloadable!]
  2. Barry Ubbels & Yin-Yen Tseng & Erik T. Verhoef, 2005. "Value of time, schedule delay and reliability - estimates based on choice behaviour of Dutch commuters facing congestion," ERSA conference papers ersa05p202, European Regional Science Association. [Downloadable!]
  3. De Borger B. & Mogens F., 2006. "Discrete choices and the trade off between money and time: Another test of the theory of reference dependent preferences," Working Papers 2006034, University of Antwerp, Faculty of Applied Economics. [Downloadable!]
  4. Yin-yen Tseng & Erik Verhoef, 2007. "Value of Time by Time of Day: A Stated-Preference Study," Tinbergen Institute Discussion Papers 07-061/3, Tinbergen Institute, revised 08 Nov 2007. [Downloadable!]
  5. Parry, Ian & Harrington, Winston & Nelson, Per-Kristian & Safirova, Elena & Mason, Dave & Gillingham, Kenneth, 2003. "Welfare and Distributional Effects of Road Pricing Schemes for Metropolitan Washington, DC," Discussion Papers dp-03-57, Resources For the Future. [Downloadable!]
  6. John Hartman, 2007. "The Relevance of Heterogeneity in a Congested Route Network with Tolls: An Analysis of Two Experiments Using Actual Waiting Times and Monetized Time Costs," University of California at Santa Barbara, Economics Working Paper Series 15-07, Department of Economics, UC Santa Barbara. [Downloadable!]
  7. Gene Amromin & Carrie Jankowski & Richard D. Porter, 2005. "Transforming payment choices by doubling fees on the Illinois Tollway," Conference Series ; [Proceedings], Federal Reserve Bank of Boston. [Downloadable!]
  8. Richard Arnott & Elizaveta Shevyakhova, 2007. "Tenancy Rent Control and Credible Commitment in Maintenance," Boston College Working Papers in Economics 661, Boston College Department of Economics. [Downloadable!]
  9. Sheri Markose & Amadeo Alentorn & Deddy Koesrindartoto & Peter Allen & Phil Blythe & Sergio Grosso, 2007. "A smart market for passenger road transport (SMPRT) congestion: an application of computational mechanism design," Economics Discussion Papers 630, University of Essex, Department of Economics. [Downloadable!]
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  10. Eugene Amromin & Carrie Jankowski & Richard Porter, 2006. "Transforming payment choices by doubling fees on the Illinois tollway," Working Paper Series WP-06-16, Federal Reserve Bank of Chicago. [Downloadable!]
  11. Richard Arnott, 2007. "Congestion Tolling with Agglomeration Externalities," Boston College Working Papers in Economics 660, Boston College Department of Economics. [Downloadable!]
  12. Struben, Jeroen J.R.,, 2007. "Identifying Challenges for Sustained Adoption of Alternative Fuel Vehicles and Infrastructure," Working papers 37306, Massachusetts Institute of Technology (MIT), Sloan School of Management. [Downloadable!]
  13. Ando, Amy & Harrington, Winston & McConnell, Virginia D., 2007. "Fees in an Imperfect World: An Application to Motor Vehicle Emissions," Discussion Papers dp-07-34, Resources For the Future. [Downloadable!]
  14. Kenneth A. Small & Clifford Winston & Jia Yan, 2005. "Differentiated Road Pricing, Express Lanes and Carpools: Exploiting Heterogeneous Preferences in Policy Design," Working Papers 050616, University of California-Irvine, Department of Economics, revised Mar 2006. [Downloadable!]
  15. Calthrop E. & De Borger B. & Proost S., 2006. "Externalities and partial tax reform: Does it make sense to tax road freight (but not passenger) transport?," Working Papers 2006017, University of Antwerp, Faculty of Applied Economics. [Downloadable!]
    Other versions:
  16. Fosgerau, Mogens & Karlström, Anders, 2007. "The value of reliability," MPRA Paper 5733, University Library of Munich, Germany. [Downloadable!]
  17. Anna Matas & Javier Asensio, 2007. "Commuters’ valuation of travel time variability in Barcelona," Working Papers wpdea0701, Department of Applied Economics at Universitat Autonoma of Barcelona. [Downloadable!]
  18. Richard Arnott & John Rowse, 2007. "Downtown Parking in Auto City," Boston College Working Papers in Economics 665, Boston College Department of Economics. [Downloadable!]
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