The Demand for Intercity Public Transport: The Case of Business Passengers
AbstractUsing a stated preference survey on business passengers travelling with rail or air between the two largest cities in Sweden, we investigate business passengers' preferences for different modes of transport and their corresponding attributes. We explore the usefulness of a more flexible specification of the demand for transport by using a random parameter logit (RPL) model. In the paper we find that there is a gain in using an RPL model compared to a fixed effect model, in the sense that it provides richer information about the passengers' preferences. However, we also find that the valuation of attributes does not significantly differ between a standard logit and an RPL model. Compared to what previous studies have found, the values put on attributes are very high, this including the environmental impact of the modes. This is largely explained by the fact that business passengers do not bear the cost of the trip, but still have the possibility if deciding mode of transport.
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Bibliographic InfoPaper provided by University of Gothenburg, Department of Economics in its series Working Papers in Economics with number 12.
Length: 24 pages
Date of creation: 31 Mar 1999
Date of revision:
Publication status: Published in Applied Economics, 2003, pages 41-50.
Contact details of provider:
Postal: Department of Economics, School of Business, Economics and Law, University of Gothenburg, Box 640, SE 405 30 GÖTEBORG, Sweden
Phone: 031-773 10 00
Web page: http://www.handels.gu.se/econ/
More information through EDIRC
Business passengers; Intercity transport; Random parameter logit;
Other versions of this item:
- Fredrik Carlsson, 2003. "The demand for intercity public transport: the case of business passengers," Applied Economics, Taylor and Francis Journals, vol. 35(1), pages 41-50.
- C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
- R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Systems - - - Transportation: Demand, Supply, and Congestion
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