Confidence Interval for Willingness to Pay Measures in Mode Choice Models
AbstractWe obtain confidence intervals for willingness-to-pay (WTP) measures derived from a mode choice model estimated to analyse travel demand for suburban trips in the two main interurban corridors in Gran Canaria using a mixed RP/SP data base. We considered a specification of the systematic utility that incorporates income effect, and interactions among socioeconomic variables and level-of-service attributes, as well as between travel cost and frequency. As our model provides rather complex expressions of the marginal utilities, we simulated the distribution of the WTP (in general, unknown) from a multivariate Normal distribution of the parameter vector. For every random draw of the parameter vector, the corresponding simulation of the WTP was obtained applying the sample enumeration method to the individuals in the RP database. The extremes of the confidence interval were determined by the percentiles on this distribution. After trying different simulation strategies we observed that the size of the intervals was strongly affected by the outliers as well as by the magnitude of the simulated parameters. In all cases examined the simulated distribution of the corresponding WTP measure presents an asymmetric shape that was very similar for the two model specifications considered. This is consistent with previous findings using a radically different approach. We also observed that the upper extreme of the confidence interval for the value of time in private transport was very unstable for different numbers of random draws. Copyright Springer Science + Business Media, LLC 2006
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Springer in its journal Networks and Spatial Economics.
Volume (Year): 6 (2006)
Issue (Month): 2 (June)
Contact details of provider:
Web page: http://www.springerlink.com/link.asp?id=106607
Confidence intervals; Willingness to pay; Mode choice;
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Jara-Díaz, Sergio R. & Videla, Jorge, 1989. "Detection of income effect in mode choice: Theory and application," Transportation Research Part B: Methodological, Elsevier, vol. 23(6), pages 393-400, December.
- Train,Kenneth E., 2009.
"Discrete Choice Methods with Simulation,"
Cambridge University Press, number 9780521747387, April.
- Bliemer, Michiel C.J. & Rose, John M., 2013. "Confidence intervals of willingness-to-pay for random coefficient logit models," Transportation Research Part B: Methodological, Elsevier, vol. 58(C), pages 199-214.
- Heng Sun & Wayne Forsythe & Nigel Waters, 2007. "Modeling Urban Land Use Change and Urban Sprawl: Calgary, Alberta, Canada," Networks and Spatial Economics, Springer, vol. 7(4), pages 353-376, December.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Guenther Eichhorn) or (Christopher F. Baum).
If references are entirely missing, you can add them using this form.