On the other half of the story: allowing for discrete penalties for excessive travel times in scheduling models
AbstractIn this paper, we introduce a discrete penalty for excessive travel times into scheduling models whose maximal expected utilities have attractive theoretical features of linearity in standard deviation or variance. The extended models maintain the properties of linearity, and its maximal expected utility depends on the shape of the travel time distribution. The value of travel time and its variability could be measured indirectly by the scheduling preferences. The results from empirical data reveal that the extended models, with such a discrete penalty, provide a highly significant better goodness of fit to the data. Furthermore, introducing the penalty for excessive travel time has a strong effect on the estimates of the other scheduling parameters, thus affecting the valuations of travel time. Our findings indicate that, apart from the mean and standard deviation (or variance), individuals value other characteristics of travel time distribution, in particular the probability of excessive travel time.
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Bibliographic InfoPaper provided by CTS - Centre for Transport Studies Stockholm (KTH and VTI) in its series Working papers in Transport Economics with number 2013:15.
Length: 21 pages
Date of creation: 19 Sep 2013
Date of revision:
Note: This paper is presented on internal and external seminars, and presented at the annual conference of the International Association of transportation Economics (ITEA Kuhmo Nectar), in Berlin June 2012.
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Postal: Centrum för Transportstudier (CTS), Teknikringen 10, 100 44 Stockholm, Sweden
Web page: http://www.kth.se/abe/om_skolan/organisation/centra/cts
Scheduling preferences; Travel time variability; Asymmetric travel time distribution; Excessive travel time;
Find related papers by JEL classification:
- R40 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-09-25 (All new papers)
- NEP-LAM-2013-09-25 (Central & South America)
- NEP-LTV-2013-09-25 (Unemployment, Inequality & Poverty)
- NEP-NEU-2013-09-25 (Neuroeconomics)
- NEP-TRE-2013-09-25 (Transport Economics)
- NEP-TUR-2013-09-25 (Tourism Economics)
- NEP-UPT-2013-09-25 (Utility Models & Prospect Theory)
- NEP-URE-2013-09-25 (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.:
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