Can we use hedonic pricing to estimate freight value of time?
AbstractIn this article, we investigate the use of hedonic pricing method to measure freight value of time. We concentrate on the demand side of the freight market (that is shippers) and give a pre-cise definition to transport duration. We analyse the different temporal dimensions of freight transportation and examine how equilibrium forms on the freight market. This equilibrium is defined in reference cost and duration of the transport operations. Subsequently, we analyse how standard hedonic pricing technique has to be customised to be implemented on freight value of time. In a final section, we implement hedonic analysis on a data set consisting of ship-pers’ interviews. We test different specifications and find information on the distribution of shippers' willingness to pay for transport time savings.
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Bibliographic InfoPaper provided by Economics and Econometrics Research Institute (EERI), Brussels in its series EERI Research Paper Series with number EERI_RP_2008_08.
Length: 25 pages
Date of creation: 21 Oct 2008
Date of revision:
Hedonic pricing; freight value of time.;
Find related papers by JEL classification:
- R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion
- D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-11-04 (All new papers)
- NEP-GEO-2008-11-04 (Economic Geography)
- NEP-URE-2008-11-04 (Urban & Real Estate Economics)
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.:
- Cropper, Maureen L, et al, 1993. "Valuing Product Attributes Using Single Market Data: A Comparison of Hedonic and Discrete Choice Approaches," The Review of Economics and Statistics, MIT Press, vol. 75(2), pages 225-32, May.
- Cassel, Eric & Mendelsohn, Robert, 1985. "The choice of functional forms for hedonic price equations: Comment," Journal of Urban Economics, Elsevier, vol. 18(2), pages 135-142, September.
- KONISHI Yoko & Se-il MUN & NISHIYAMA Yoshihiko & Ji Eun SUNG, 2014. "Measuring the Value of Time in Freight Transportation," Discussion papers, Research Institute of Economy, Trade and Industry (RIETI) 14004, Research Institute of Economy, Trade and Industry (RIETI).
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