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The Demand for Intercity Public Transport: The Case of Business Passengers

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  • Carlsson, Fredrik

    ()
    (Department of Economics, School of Economics and Commercial Law, Göteborg University)

Abstract

Using 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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File URL: http://swopec.hhs.se/gunwpe/papers/gunwpe0012.pdf.zip
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Bibliographic Info

Paper provided by University of Gothenburg, Department of Economics in its series Working Papers in Economics with number 12.

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Length: 24 pages
Date of creation: 31 Mar 1999
Date of revision:
Publication status: Published in Applied Economics, 2003, pages 41-50.
Handle: RePEc:hhs:gunwpe:0012

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/
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Related research

Keywords: Business passengers; Intercity transport; Random parameter logit;

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References

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  1. David Revelt & Kenneth Train, 1998. "Mixed Logit With Repeated Choices: Households' Choices Of Appliance Efficiency Level," The Review of Economics and Statistics, MIT Press, vol. 80(4), pages 647-657, November.
  2. Algers, Staffan & Bergström, Pål & Dahlberg, Matz & Lindqvist Dillén, Johanna, 1998. "Mixed Logit Estimation of the Value of Travel Time," Working Paper Series 1998:15, Uppsala University, Department of Economics.
  3. Philippe Aghion & Jean Tirole, 1994. "Formal and Real Authority in Organizations," Working papers 95-8, Massachusetts Institute of Technology (MIT), Department of Economics.
  4. Krinsky, Itzhak & Robb, A Leslie, 1986. "On Approximating the Statistical Properties of Elasticities," The Review of Economics and Statistics, MIT Press, vol. 68(4), pages 715-19, November.
  5. Kenneth E. Train, 1998. "Recreation Demand Models with Taste Differences over People," Land Economics, University of Wisconsin Press, vol. 74(2), pages 230-239.
  6. Brownstone, David & Train, Kenneth, 1999. "Forecasting new product penetration with flexible substitution patterns," University of California Transportation Center, Working Papers qt1j6814b3, University of California Transportation Center.
  7. Herriges, Joseph A. & Kling, Catherine L., 2003. "Recreation Demand Models," Staff General Research Papers 10211, Iowa State University, Department of Economics.
  8. Bhat, Chandra R., 1998. "Accommodating flexible substitution patterns in multi-dimensional choice modeling: formulation and application to travel mode and departure time choice," Transportation Research Part B: Methodological, Elsevier, vol. 32(7), pages 455-466, September.
  9. Kahneman, Daniel & Knetsch, Jack L., 1992. "Valuing public goods: The purchase of moral satisfaction," Journal of Environmental Economics and Management, Elsevier, vol. 22(1), pages 57-70, January.
  10. Brownstone, David & Bunch, David S & Train, Kenneth, 1999. "Joint mixed logit models of stated and revealed preferences for alternative-fuel vehicles," University of California Transportation Center, Working Papers qt45f996hh, University of California Transportation Center.
  11. Andreoni, James, 1990. "Impure Altruism and Donations to Public Goods: A Theory of Warm-Glow Giving?," Economic Journal, Royal Economic Society, vol. 100(401), pages 464-77, June.
  12. David Hensher & April Reyes, 2000. "Trip chaining as a barrier to the propensity to use public transport," Transportation, Springer, vol. 27(4), pages 341-361, December.
  13. Hausman, Jerry A & Wise, David A, 1978. "A Conditional Probit Model for Qualitative Choice: Discrete Decisions Recognizing Interdependence and Heterogeneous Preferences," Econometrica, Econometric Society, vol. 46(2), pages 403-26, March.
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Citations

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Cited by:
  1. Francisco Javier Amador Morera & Rosa Marina González Marrero, 2005. "Value of Travel Time Savings for University Students and Preference Heterogeneity," Hacienda Pública Española, IEF, vol. 174(3), pages 25-41, September.
  2. Francisco Javier Amador & Rosa Marina González & Juan de Dios Ortúzar, 2004. "Preference heterogeneity and willingness to pay for travel time," Documentos de trabajo conjunto ULL-ULPGC 2004-12, Facultad de Ciencias Económicas de la ULPGC.
  3. Martine Audibert & Yong He & Jacky Mathonnat, 2013. "Multinomial and Mixed Logit Modeling in the Presence of Heterogeneity: A Two-Period Comparison of Healthcare Provider Choice in Rural China," Working Papers halshs-00846085, HAL.
  4. Bilbao Ubillos, J. & Fernández Sainz, A., 2004. "The influence of quality and price on the demand for urban transport: the case of university students," Transportation Research Part A: Policy and Practice, Elsevier, vol. 38(8), pages 607-614, October.
  5. Yeonbae Kim & Jeong-Dong Lee & Daeyoung Koh, 2005. "Effects of consumer preferences on the convergence of mobile telecommunications devices," Applied Economics, Taylor & Francis Journals, vol. 37(7), pages 817-826.
  6. Caussade, Sebastián & Ortúzar, Juan de Dios & Rizzi, Luis I. & Hensher, David A., 2005. "Assessing the influence of design dimensions on stated choice experiment estimates," Transportation Research Part B: Methodological, Elsevier, vol. 39(7), pages 621-640, August.

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