Long-Run vs. Short-Run Perspectives on Consumer Scheduling: Evidence from a Revealed-Preference Experiment among Peak-Hour Road Commuters
AbstractTheoretical and empirical studies of consumer scheduling behavior usually ignore that consumers have more flexibility to adjust their schedule in the long run than in the short run. We are able to distinguish between long-run choices of travel routines and short-run choices of departure times due to an extensive panel dataset of commuters who participate in a real-life peak avoidance experiment. We find that the participants, who obtain a monetary reward for not traveling along a camera-observed highway link during the morning peak, value travel time higher in the long-run context compared to the short run, as changes in travel time are more permanent and can be exploited better through the adjustment of routines. Schedule delays are, in contrast, valued higher inthe short-run model, reflecting that scheduling restrictions are typically more binding in the short run. Since the short-run and the long-run shadow prices di er by factors ranging from 2 to 5 in our basic model, our results may have substantial impacts on optimal choices for transport policies such as pricing and investment.
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Bibliographic InfoPaper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 11-181/3.
Date of creation: 22 Dec 2011
Date of revision: 16 May 2012
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scheduling model; travel routines; departure time choices; long-run vs. short-run; information; travel time expectations; revealed preference data; reward experiment;
Find related papers by JEL classification:
- C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
- D03 - Microeconomics - - General - - - Behavioral Microeconomics; Underlying Principles
- D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General
- R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-05-29 (All new papers)
- NEP-CBE-2012-05-29 (Cognitive & Behavioural Economics)
- NEP-TRE-2012-05-29 (Transport Economics)
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