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Travel choice behaviour under uncertainty in real-market settings: A source-dependent utility approach

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  • Li, Zheng
  • Hensher, David A.
  • Zeng, Jingjing

Abstract

In this study, we present evidence on the source-preference difference between two natural sources of uncertainty with mode-specific travel time variability (public transport vs private car), while accounting for the role of experiential information in shaping the revealed ambiguity seeking in the context of travel mode choice. The proposed structural model jointly accounts for time-money trade-offs, diminishing sensitivity towards travel outcomes, perceptual conditioning, beliefs and ambiguity attitudes. We find that in the loss domain with possible travel time outcomes, decision makers may prefer more volatile travel time variability embedded in public transport systems, and with more experiential information, this preference would become stronger.

Suggested Citation

  • Li, Zheng & Hensher, David A. & Zeng, Jingjing, 2022. "Travel choice behaviour under uncertainty in real-market settings: A source-dependent utility approach," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 168(C).
    • Handle: RePEc:eee:transe:v:168:y:2022:i:c:s1366554522003398
    DOI: 10.1016/j.tre.2022.102962
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    More about this item

    Keywords

    Travel choice under uncertainty; Source preference; Ambiguity seeking; Experience conditioning; Travel time variability;
    All these keywords.

    JEL classification:

    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise

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