IDEAS home Printed from https://ideas.repec.org/a/kap/transp/v47y2020i2d10.1007_s11116-018-9912-5.html
   My bibliography  Save this article

Willingness to pay for freight travel time savings: contrasting random utility versus random valuation

Author

Listed:
  • Boris Goenaga

    (Universidad del Norte)

  • Victor Cantillo

    (Universidad del Norte)

Abstract

There is a considerable gap between the existing knowledge used to estimate the value of time in passenger transport when compared with the framework of analysis developed for freight transport. In this paper, we applied a model that is gaining recognition in the context of passenger values of time estimation known as random valuation (RV) to a context in which there is little evidence of its application: freight value of time estimation (FVOT). Secondly, we compared this model to the commonly used methodology, random utility (RU). We analysed several levels of model specification to estimate the FVOT using data from a stated choice experiment applied in five of the main cargo transport road corridors of Colombia. The analysis accounts for the value of time differentiated by vehicle type. Results suggest that the RV models performed better for the same dataset than its counterpart RU in all cases. Another aspect to highlight is that the FVOT value obtained with the RU approach was pretty similar to those obtained with the RV in most cases. Also, the estimates FVOT for empty trips are closer, and in some cases higher, than those of loaded trips.

Suggested Citation

  • Boris Goenaga & Victor Cantillo, 2020. "Willingness to pay for freight travel time savings: contrasting random utility versus random valuation," Transportation, Springer, vol. 47(2), pages 705-736, April.
  • Handle: RePEc:kap:transp:v:47:y:2020:i:2:d:10.1007_s11116-018-9912-5
    DOI: 10.1007/s11116-018-9912-5
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11116-018-9912-5
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.1007/s11116-018-9912-5?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Simona Bolis & Rico Maggi, 2003. "Logistics Strategy and Transport Service Choices: An Adaptive Stated Preference Experiment," Growth and Change, Wiley Blackwell, vol. 34(4), pages 490-504, September.
    2. Masiero, Lorenzo & Hensher, David A., 2010. "Analyzing loss aversion and diminishing sensitivity in a freight transport stated choice experiment," Transportation Research Part A: Policy and Practice, Elsevier, vol. 44(5), pages 349-358, June.
    3. Fosgerau, Mogens, 2007. "Using nonparametrics to specify a model to measure the value of travel time," Transportation Research Part A: Policy and Practice, Elsevier, vol. 41(9), pages 842-856, November.
    4. Luca Zamparini & Aura Reggiani, 2007. "Freight Transport and the Value of Travel Time Savings: A Meta‐analysis of Empirical Studies," Transport Reviews, Taylor & Francis Journals, vol. 27(5), pages 621-636, March.
    5. Puckett, Sean M. & Hensher, David A., 2009. "Revealing the extent of process heterogeneity in choice analysis: An empirical assessment," Transportation Research Part A: Policy and Practice, Elsevier, vol. 43(2), pages 117-126, February.
    6. María Feo-Valero & Leandro García-Menéndez & Rodrigo Garrido-Hidalgo, 2011. "Valuing Freight Transport Time using Transport Demand Modelling: A Bibliographical Review," Transport Reviews, Taylor & Francis Journals, vol. 31(5), pages 625-651.
    7. Hensher,David A. & Rose,John M. & Greene,William H., 2015. "Applied Choice Analysis," Cambridge Books, Cambridge University Press, number 9781107465923, October.
    8. Börjesson, Maria & Eliasson, Jonas, 2014. "Experiences from the Swedish Value of Time study," Transportation Research Part A: Policy and Practice, Elsevier, vol. 59(C), pages 144-158.
    9. Erik Bergkvist, 2001. "The value of time and forecasting of flowsin freight transportation," ERSA conference papers ersa01p271, European Regional Science Association.
    10. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521747387, October.
    11. Hess, Stephane & Daly, Andrew & Dekker, Thijs & Cabral, Manuel Ojeda & Batley, Richard, 2017. "A framework for capturing heterogeneity, heteroskedasticity, non-linearity, reference dependence and design artefacts in value of time research," Transportation Research Part B: Methodological, Elsevier, vol. 96(C), pages 126-149.
    12. Cameron, Trudy Ann & James, Michelle D, 1987. "Efficient Estimation Methods for "Closed-ended' Contingent Valuation Surveys," The Review of Economics and Statistics, MIT Press, vol. 69(2), pages 269-276, May.
    13. Zamparini, Luca & Layaa, John & Dullaert, Wout, 2011. "Monetary values of freight transport quality attributes: A sample of Tanzanian firms," Journal of Transport Geography, Elsevier, vol. 19(6), pages 1222-1234.
    14. Rich, J. & Holmblad, P.M. & Hansen, C.O., 2009. "A weighted logit freight mode-choice model," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 45(6), pages 1006-1019, November.
    15. Danielis, Romeo & Marcucci, Edoardo & Rotaris, Lucia, 2005. "Logistics managers' stated preferences for freight service attributes," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 41(3), pages 201-215, May.
    16. David A. Hensher, 2006. "How do respondents process stated choice experiments? Attribute consideration under varying information load," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 21(6), pages 861-878.
    17. Puckett, Sean M. & Hensher, David A., 2008. "The role of attribute processing strategies in estimating the preferences of road freight stakeholders," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 44(3), pages 379-395, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ming-Chih Tsai & Rico Merkert & Jiana-Fu Wang, 2021. "What drives freight transportation customer loyalty? Diverging marketing approaches for the air freight express industry," Transportation, Springer, vol. 48(3), pages 1503-1521, June.
    2. Merkert, Rico & Beck, Matthew J. & Bushell, James, 2021. "Will It Fly? Adoption of the road pricing framework to manage drone use of airspace," Transportation Research Part A: Policy and Practice, Elsevier, vol. 150(C), pages 156-170.
    3. Ming-Chih Tsai & Rico Merkert & Jiana-Fu Wang, 0. "What drives freight transportation customer loyalty? Diverging marketing approaches for the air freight express industry," Transportation, Springer, vol. 0, pages 1-19.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jawaher Binsuwadan & Gerard De Jong & Richard Batley & Phill Wheat, 2022. "The value of travel time savings in freight transport: a meta-analysis," Transportation, Springer, vol. 49(4), pages 1183-1209, August.
    2. Shams, Kollol & Asgari, Hamidreza & Jin, Xia, 2017. "Valuation of travel time reliability in freight transportation: A review and meta-analysis of stated preference studies," Transportation Research Part A: Policy and Practice, Elsevier, vol. 102(C), pages 228-243.
    3. Mesa-Arango, Rodrigo & Ukkusuri, Satish V., 2014. "Attributes driving the selection of trucking services and the quantification of the shipper’s willingness to pay," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 71(C), pages 142-158.
    4. Tapia, Rodrigo J. & de Jong, Gerard & Larranaga, Ana M. & Bettella Cybis, Helena B., 2020. "Application of MDCEV to infrastructure planning in regional freight transport," Transportation Research Part A: Policy and Practice, Elsevier, vol. 133(C), pages 255-271.
    5. Sander Cranenburgh & Marco Kouwenhoven, 2021. "An artificial neural network based method to uncover the value-of-travel-time distribution," Transportation, Springer, vol. 48(5), pages 2545-2583, October.
    6. Kingsley Adjenughwure & Basil Papadopoulos, 2019. "Towards a Fair and More Transparent Rule-Based Valuation of Travel Time Savings," Sustainability, MDPI, vol. 11(4), pages 1-19, February.
    7. Stephane Hess & Andrew Daly & Maria Börjesson, 2020. "A critical appraisal of the use of simple time-money trade-offs for appraisal value of travel time measures," Transportation, Springer, vol. 47(3), pages 1541-1570, June.
    8. Konstantinus, Abisai & Zuidgeest, Mark & Hess, Stephane & de Jong, Gerard, 2020. "Assessing inter-urban freight mode choice preference for short-sea shipping in the Southern African Development Community region," Journal of Transport Geography, Elsevier, vol. 88(C).
    9. Masiero, Lorenzo & Hensher, David A., 2010. "Analyzing loss aversion and diminishing sensitivity in a freight transport stated choice experiment," Transportation Research Part A: Policy and Practice, Elsevier, vol. 44(5), pages 349-358, June.
    10. Mohammed Alemu & Morten Mørkbak & Søren Olsen & Carsten Jensen, 2013. "Attending to the Reasons for Attribute Non-attendance in Choice Experiments," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 54(3), pages 333-359, March.
    11. Tapia, Rodrigo Javier & dos Santos Senna, Luiz Afonso & Larranaga, Ana Margarita & Cybis, Helena Beatriz Bettella, 2019. "Joint mode and port choice for soy production in Buenos Aires province, Argentina," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 121(C), pages 100-118.
    12. Masiero, Lorenzo & Maggi, Rico, 2012. "Estimation of indirect cost and evaluation of protective measures for infrastructure vulnerability: A case study on the transalpine transport corridor," Transport Policy, Elsevier, vol. 20(C), pages 13-21.
    13. Lucia Rotaris & Romeo Danielis & Igor Sarman & Edoardo Marcucci, 2012. "Testing for nonlinearity in the choice of a freight transport service," European Transport \ Trasporti Europei, ISTIEE, Institute for the Study of Transport within the European Economic Integration, issue 50, pages 1-4.
    14. Lorenzo Masiero & David Hensher, 2011. "Shift of reference point and implications on behavioral reaction to gains and losses," Transportation, Springer, vol. 38(2), pages 249-271, March.
    15. Tao, Xuezong & Zhu, Lichao, 2020. "Meta-analysis of value of time in freight transportation: A comprehensive review based on discrete choice models," Transportation Research Part A: Policy and Practice, Elsevier, vol. 138(C), pages 213-233.
    16. Ralf Elbert & Lowis Seikowsky, 2017. "The influences of behavioral biases, barriers and facilitators on the willingness of forwarders’ decision makers to modal shift from unimodal road freight transport to intermodal road–rail freight tra," Journal of Business Economics, Springer, vol. 87(8), pages 1083-1123, November.
    17. Sandra Notaro & Maria De Salvo & Roberta Raffaelli, 2022. "Estimating Willingness to Pay for Alpine Pastures: A Discrete Choice Experiment Accounting for Attribute Non-Attendance," Sustainability, MDPI, vol. 14(7), pages 1-15, March.
    18. Feo-Valero, María & Arencibia, Ana Isabel & Román, Concepción, 2016. "Analyzing discrepancies between willingness to pay and willingness to accept for freight transport attributes," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 89(C), pages 151-164.
    19. Tsoleridis, Panagiotis & Choudhury, Charisma F. & Hess, Stephane, 2022. "Deriving transport appraisal values from emerging revealed preference data," Transportation Research Part A: Policy and Practice, Elsevier, vol. 165(C), pages 225-245.
    20. Hess, Stephane & Hensher, David A., 2010. "Using conditioning on observed choices to retrieve individual-specific attribute processing strategies," Transportation Research Part B: Methodological, Elsevier, vol. 44(6), pages 781-790, July.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:transp:v:47:y:2020:i:2:d:10.1007_s11116-018-9912-5. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.