IDEAS home Printed from https://ideas.repec.org/p/cdl/ucsbec/qt22b46341.html
   My bibliography  Save this paper

The Relevance of Heterogeneity in a Congested Route Network with Tolls: An Analysis of Two Experiments Using Actual Waiting Times and Monetized Time Costs

Author

Listed:
  • Hartman, John Lawrence

Abstract

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 individuals’ 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.

Suggested Citation

  • Hartman, John Lawrence, 2007. "The Relevance of Heterogeneity in a Congested Route Network with Tolls: An Analysis of Two Experiments Using Actual Waiting Times and Monetized Time Costs," University of California at Santa Barbara, Economics Working Paper Series qt22b46341, Department of Economics, UC Santa Barbara.
  • Handle: RePEc:cdl:ucsbec:qt22b46341
    as

    Download full text from publisher

    File URL: http://www.escholarship.org/uc/item/22b46341.pdf;origin=repeccitec
    Download Restriction: no

    References listed on IDEAS

    as
    1. 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 627-647, August.
    2. 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.
    3. Ellingsen, Tore & Johannesson, Magnus, 2009. "Time is not money," Journal of Economic Behavior & Organization, Elsevier, vol. 72(1), pages 96-102, October.
    4. 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.
    5. 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.
    6. 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 359-383, June.
    7. 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.
    8. 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.
    9. Taubman, Paul, 1989. "Role of Parental Income in Educational Attainment," American Economic Review, American Economic Association, vol. 79(2), pages 57-61, May.
    10. Thorsten Chmura & Thomas Pitz, 2004. "Minority Game - Experiments and Simulations of Traffic Scenarios," Bonn Econ Discussion Papers bgse23_2004, University of Bonn, Germany.
    11. 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.
    12. Urs Fischbacher, 2007. "z-Tree: Zurich toolbox for ready-made economic experiments," Experimental Economics, Springer;Economic Science Association, vol. 10(2), pages 171-178, June.
    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. Tibor Neugebauer & Stefan Traub, 2012. "Public good and private good valuation for waiting time reduction: a laboratory study," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 39(1), pages 35-57, June.
    2. Morgan, John & Orzen, Henrik & Sefton, Martin, 2009. "Network architecture and traffic flows: Experiments on the Pigou-Knight-Downs and Braess Paradoxes," Games and Economic Behavior, Elsevier, vol. 66(1), pages 348-372, May.
    3. Kroll, Eike B. & Morgenstern, Ralf & Neumann, Thomas & Schosser, Stephan & Vogt, Bodo, 2014. "Bargaining power does not matter when sharing losses – Experimental evidence of equal split in the Nash bargaining game," Journal of Economic Behavior & Organization, Elsevier, vol. 108(C), pages 261-272.

    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: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). General contact details of provider: http://edirc.repec.org/data/educsus.html .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.