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Determinants of Route Choice and the Value of Traveler Information

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Author Info
Lei Zhang
David Levinson () (Nexus (Networks, Economics, and Urban Systems) Research Group, Department of Civil Engineering, University of Minnesota)

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Abstract

A major strategy of federal ITS initiatives and state departments of transportation is to provide traveler information to motorists through various means, including variable message signs, the internet, telephone services like 511, in-vehicle guidance systems, and TV and radio reports. This is relatively uncontroversial, but its effectiveness is unknown. Drivers receive value from traveler information in several ways, including the ability to save time, but perhaps more importantly, other personal, social, safety, or psychological impacts from certainty. This information can be economically valued. The benefits of reduction in driver uncertainty when information is provided at the beginning of the trip by various means is the main variable we aim to measure in this research, in which we assess user preferences for routes as a function of the presence and accuracy of information, while controlling for other trip and route attributes, such as trip purpose, travel time, distance, number of stops, delay, esthetics, level of commercial development, and individual characteristics. Data is collected in a field experiment in which more than 100 drivers, given real-time travel time information with varying degrees of accuracy, drove four of five alternative routes between a pre-selected OD pair in the Twin Cities metro area. Ordinary regression, multinomial, and rank-ordered logit models produce estimates of the value of information with some variation. In general, results show that travelers are willing to pay up to $1 per trip for pre-trip travel time information. The value of information is higher for commute and event trips and when congestion on the usual route is heavier. The accuracy of the traveler information is also a crucial factor. In fact, there do not seem be incentives for travelers to use traveler information at all unless they perceive it to be accurate. Finally, most travelers (70%) prefer that such information should be provided for free by the public sector, while some (19%) believe that it is better for the private sector to provide such service at a charge. Over 35% of subjects are willing to pay for OD-customized pre-trip travel time information.

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File URL: http://dx.doi.org/10.3141/2086-10
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Publisher Info
Paper provided by University of Minnesota: Nexus Research Group in its series Working Papers with number 200808.

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Date of creation: 2006
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Publication status: Published in Transportation Research Record: Journal of the Transportation Research Board 2086:81-92
Handle: RePEc:nex:wpaper:determinantsofroutechoice

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Postal: Dept. of Civil Engineering, 500 Pillsbury Drive SE, Minneapolis, MN 55455
Phone: +01 (612) 625-6354
Fax: +01 (612) 626-7750
Web page: http://nexus.umn.edu
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Related research
Keywords: Value of Information; Advanced Traveler Information System (ATIS); Real-Time Traffic Operations; Travel Behavior; Spatial behavior; Wayfinding Behavior; Route Choice.;

Other versions of this item:

Find related papers by JEL classification:
R41 - Urban, Rural, and Regional Economics - - Transportation Systems - - - Transportation: Demand, Supply, and Congestion
R48 - Urban, Rural, and Regional Economics - - Transportation Systems - - - Government Pricing; Regulatory Policies
D10 - Microeconomics - - Household Behavior - - - General
D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search, Learning, and Information
D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior

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  1. Khattak, Asad J. & Schofer, Joseph L. & Koppelman, Frank S., 1993. "Commuters' enroute diversion and return decisions: Analysis and implications for advanced traveler information systems," Transportation Research Part A: Policy and Practice, Elsevier, vol. 27(2), pages 101-111, April. [Downloadable!] (restricted)
  2. Jara-Diaz, Sergio R., 1990. "Consumer's surplus and the value of travel time savings," Transportation Research Part B: Methodological, Elsevier, vol. 24(1), pages 73-77, February. [Downloadable!] (restricted)
  3. Kanafani, A. & Al-Deek, H., 1991. "A simple model for route guidance benefits," Transportation Research Part B: Methodological, Elsevier, vol. 25(4), pages 191-201, August. [Downloadable!] (restricted)
  4. Yang, Hai, 1998. "Multiple equilibrium behaviors and advanced traveler information systems with endogenous market penetration," Transportation Research Part B: Methodological, Elsevier, vol. 32(3), pages 205-218, April. [Downloadable!] (restricted)
  5. Yin, Yafeng & Yang, Hai, 2003. "Simultaneous determination of the equilibrium market penetration and compliance rate of advanced traveler information systems," Transportation Research Part A: Policy and Practice, Elsevier, vol. 37(2), pages 165-181, February. [Downloadable!] (restricted)
  6. Koop, G & Poirier, D J, 1994. "Rank-Ordered Logit Models: An Empirical Analysis of Ontario Voter Preferences," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 9(4), pages 369-88, Oct.-Dec.. [Downloadable!] (restricted)
  7. Bates, John J, 1987. "Measuring Travel Time Values with a Discrete Choice Model: A Note," Economic Journal, Royal Economic Society, vol. 97(386), pages 493-98, June. [Downloadable!] (restricted)
  8. Lo, Hong K. & Szeto, W. Y., 2004. "Modeling advanced traveler information services: static versus dynamic paradigms," Transportation Research Part B: Methodological, Elsevier, vol. 38(6), pages 495-515, July. [Downloadable!] (restricted)
  9. Lo, Hong K. & Szeto, W. Y., 2002. "A methodology for sustainable traveler information services," Transportation Research Part B: Methodological, Elsevier, vol. 36(2), pages 113-130, February. [Downloadable!] (restricted)
  10. Yang, Hai & Meng, Qiang, 2001. "Modeling user adoption of advanced traveler information systems: dynamic evolution and stationary equilibrium," Transportation Research Part A: Policy and Practice, Elsevier, vol. 35(10), pages 895-912, December. [Downloadable!] (restricted)
  11. Srinivasan, Karthik K. & Mahmassani, Hani S., 2003. "Analyzing heterogeneity and unobserved structural effects in route-switching behavior under ATIS: a dynamic kernel logit formulation," Transportation Research Part B: Methodological, Elsevier, vol. 37(9), pages 793-814, November. [Downloadable!] (restricted)
  12. David Levinson, 2002. "The Economics of Traveler Information from Probes," Working Papers 200201, University of Minnesota: Nexus Research Group. [Downloadable!]
  13. David Levinson, 2003. "The Value of Advanced Traveler Information Systems for Route Choice," Working Papers 200307, University of Minnesota: Nexus Research Group. [Downloadable!]
  14. David A. Hensher, 2001. "Measurement of the Valuation of Travel Time Savings," Journal of Transport Economics and Policy, London School of Economics and University of Bath, vol. 35(1), pages 71-98, January. [Downloadable!] (restricted)
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