The Relevance of Heterogeneity in a Congested Route Network with Tolls: An Analysis of Two Experiments Using Actual Waiting Times and Monetized Time Costs
Heterogeneity is important in some settings. One such instance involves congested networks with tolls, since people trade time for money at different rates. This paper reports results from two experiments that examine these issues. In both experiments, subjects choose between traveling on an indirect route that does not congest and a direct toll route that congests as more subjects travel on it. In the first experiment, values of time are assigned to subjects. Subjects generally sort themselves with high value-of-time subjects choosing the toll route. I also find that as the cost of deviating from the equilibrium prediction increases, subjects are more likely to make choices consistent with equilibrium. In other words, coordination problems diminish as value-of-time heterogeneity increases. The second experiment simulates a boring commute in which subjects must wait after the experimental rounds are finished. Subjects can give up money for reduced waiting time in this experiment by traveling on the toll route. In this experiment, some subjects travel the toll route frequently, giving up some of their payout in order to reduce their waiting time after the experiment. These choices are likely based on individualsâ€™ values of time, since aggregate behavior differs by session. There is also evidence that subjects with time constraints travel the toll route more often than other subjects.
|Date of creation:||01 Nov 2007|
|Date of revision:|
|Contact details of provider:|| Postal: 2127 North Hall, Santa Barbara, CA 93106-9210|
Phone: (805) 893-3670
Fax: (805) 893-8830
Web page: http://www.escholarship.org/repec/ucsbecon_dwp/
More information through EDIRC
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.:
- Yannick Gabuthy & Matthieu Neveu & Laurent Denant-Boèmont, 2006.
"The Coordination Problem in a Structural Model of Peak-Period Congestion: An Experimental Study,"
- Gabuthy Yannick & Neveu Matthieu & Denant-Boemont Laurent, 2006. "The Coordination Problem in a Structural Model of Peak-Period Congestion: An Experimental Study," Review of Network Economics, De Gruyter, vol. 5(2), pages 1-26, June.
- Thorsten Chmura & Thomas Pitz, 2004. "Minority Game - Experiments and Simulations of Traffic Scenarios," Bonn Econ Discussion Papers bgse23_2004, University of Bonn, Germany.
- Taubman, Paul, 1989. "Role of Parental Income in Educational Attainment," American Economic Review, American Economic Association, vol. 79(2), pages 57-61, May.
- Ellingsen, Tore & Johannesson, Magnus, 2009.
"Time is not money,"
Journal of Economic Behavior & Organization,
Elsevier, vol. 72(1), pages 96-102, October.
- Ellingsen, Tore & Johannesson, Magnus, 2006. "Time is not money," SSE/EFI Working Paper Series in Economics and Finance 663, Stockholm School of Economics.
- Tore Ellingsen & Magnus Johannesson, 2009. "Time Is Not Money," Post-Print hal-00699366, HAL.
- Urs Fischbacher, 2007. "z-Tree: Zurich toolbox for ready-made economic experiments," Experimental Economics, Springer, vol. 10(2), pages 171-178, June.
- Deacon, Robert T & Sonstelie, Jon, 1985. "Rationing by Waiting and the Value of Time: Results from a Natural Experiment," Journal of Political Economy, University of Chicago Press, vol. 93(4), pages 627-47, August.
- Selten, R. & Chmura, T. & Pitz, T. & Kube, S. & Schreckenberg, M., 2007. "Commuters route choice behaviour," Games and Economic Behavior, Elsevier, vol. 58(2), pages 394-406, February.
- Thorsten Chmura & Thomas Pitz, 2004. "An Extended Reinforcement Algorithm for Estimation of Human Behaviour in Congestion Games," Bonn Econ Discussion Papers bgse24_2004, University of Bonn, Germany.
- Brownstone, David & Small, Kenneth A., 2005.
"Valuing time and reliability: assessing the evidence from road pricing demonstrations,"
Transportation Research Part A: Policy and Practice,
Elsevier, vol. 39(4), pages 279-293, May.
- Brownstone, David & Small, Kenneth A., 2003. "Valuing Time and Reliability: Assessing the Evidence from Road Pricing Demonstrations," University of California Transportation Center, Working Papers qt95z0p35k, University of California Transportation Center.
- Dynarski, Susan, 2004.
"Who Benefits from the Education Saving Incentive? Income, Educational Expectations and the Value of the 529 and Coverdell,"
Working Paper Series
rwp04-019, Harvard University, John F. Kennedy School of Government.
- Dynarski, Susan, 2004. "Who Benefits from the Education Saving Incentives? Income, Educational Expectations and the Value of the 529 and Coverdell," National Tax Journal, National Tax Association, vol. 57(2), pages 359-83, June.
- Susan M. Dynarski, 2004. "Who Benefits from the Education Saving Incentives? Income, Educational Expectations, and the Value of the 529 and Coverdell," NBER Working Papers 10470, National Bureau of Economic Research, Inc.
- B. F. Kiker & C. M. Condon, 1981. "The Influence of Socioeconomic Background on the Earnings of Young Men," Journal of Human Resources, University of Wisconsin Press, vol. 16(1), pages 94-105.
- Hartman, John Lawrence, 2007. "A Route Choice Experiment With an Efficient Toll," University of California at Santa Barbara, Economics Working Paper Series qt4s1116mv, Department of Economics, UC Santa Barbara.
When requesting a correction, please mention this item's handle: RePEc:cdl:ucsbec:qt22b46341. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Lisa Schiff)
If references are entirely missing, you can add them using this form.