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The User Costs of Air Travel Delay Variability

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Author Info

  • Paul Koster

    (VU University Amsterdam)

  • Eric Pels

    (VU University Amsterdam)

  • Erik Verhoef

    (VU University Amsterdam)

Abstract

We derive the expected user costs of US domestic air travel delay variability taking into account scheduling behavior of travelers. Travelers do not only consider mean arrival delays, but also face scheduling costs because they arrive too early or too late at their destination. The model allows travelers to anticipate arrival delay variability by choosing an earlier flight. We show that the expected user costs of US air traffic delays are underestimated by 16% if arrival delay variability is ignored.

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Bibliographic Info

Paper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 13-056/VIII.

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Date of creation: 09 Apr 2013
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Handle: RePEc:dgr:uvatin:20130056

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Web page: http://www.tinbergen.nl

Related research

Keywords: air traffic delay; travel time variability; scheduling; value of reliability;

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References

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  1. van den Berg, Vincent & Verhoef, Erik T., 2011. "Winning or losing from dynamic bottleneck congestion pricing?: The distributional effects of road pricing with heterogeneity in values of time and schedule delay," Journal of Public Economics, Elsevier, vol. 95(7-8), pages 983-992, August.
  2. Börjesson, Maria & Eliasson, Jonas, 2011. "On the use of "average delay" as a measure of train reliability," Transportation Research Part A: Policy and Practice, Elsevier, vol. 45(3), pages 171-184, March.
  3. Anderson, James E & Kraus, Marvin, 1981. "Quality of Service and the Demand for Air Travel," The Review of Economics and Statistics, MIT Press, vol. 63(4), pages 533-40, November.
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Cited by:
  1. Jorge Valido & M. Pilar Socorro & Francesca Medda, 2013. "DYPES: Vertical differentiation, schedule delay and entry deterrence: Low cost vs. full service airlines," Working Papers 2013-05, FEDEA.

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