Scheduling choices under rank dependent utility maximization
Rank dependent utility maximization is applied in maximizing a linear and a quadratic scheduling model considering a subjective weighting over uncertain outcomes. The optimal departure time and maximal utility are different from that under expect utility maximization in the transformed travel time density function. Probability weighting is found when estimating the linear model and the estimated weighting function suggests optimism behaviour of respondents. The results also reveal the evidence of heterogeneity in scheduling preferences. Moreover, evidence for the variable of excessive travel time beyond the traditional scheduling model specification is found even with controlling for probability weighting. Our results also show no empirical equivalence between the scheduling model and its derived forms.
|Date of creation:||19 Sep 2013|
|Date of revision:|
|Note:||The abstract of this paper has been presented at the 1st European Symposium on Quantitative Methods in Transportation Systems (LATSIS) 2012 Sep. The full paper has been presented on Euro Working Group on Transportation (EWGT) 2013 Sep., and a compact version of this paper has been submitted to EWGT2013 proceeding: Elsevier Procedia - Social and Behavioral Sciences|
|Contact details of provider:|| Postal: Centrum för Transportstudier (CTS), Teknikringen 10, 100 44 Stockholm, Sweden|
Web page: http://www.cts.kth.se/
References listed on IDEAS
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.:
- Stefanie Peer & Carl Koopmans & Erik T. Verhoef, 2010. "Predicting Travel Time Variability for Cost-Benefit Analysis," Tinbergen Institute Discussion Papers 10-071/3, Tinbergen Institute.
- Hensher, David A. & Greene, William H. & Li, Zheng, 2011. "Embedding risk attitude and decision weights in non-linear logit to accommodate time variability in the value of expected travel time savings," Transportation Research Part B: Methodological, Elsevier, vol. 45(7), pages 954-972, August.
- Fosgerau, Mogens & Engelson, Leonid, 2011.
"The value of travel time variance,"
Transportation Research Part B: Methodological,
Elsevier, vol. 45(1), pages 1-8, January.
- Börjesson, Maria & Eliasson, Jonas & Franklin, Joel, 2012. "Valuations of travel time variability in scheduling versus mean-variance models," Working papers in Transport Economics 2012:2, CTS - Centre for Transport Studies Stockholm (KTH and VTI).
- Fosgerau, Mogens & Karlström, Anders, 2010.
"The value of reliability,"
Transportation Research Part B: Methodological,
Elsevier, vol. 44(1), pages 38-49, January.
- Diecidue, E. & Wakker, P.P., 2000.
"On the Intuition of Rank-Dependent Utility,"
2000-74, Tilburg University, Center for Economic Research.
- Kahneman, Daniel & Tversky, Amos, 1979.
"Prospect Theory: An Analysis of Decision under Risk,"
Econometric Society, vol. 47(2), pages 263-91, March.
- Amos Tversky & Daniel Kahneman, 1979. "Prospect Theory: An Analysis of Decision under Risk," Levine's Working Paper Archive 7656, David K. Levine.
- Wakker,Peter P., 2010.
Cambridge University Press, number 9780521748681, November.
- Tversky, Amos & Kahneman, Daniel, 1992. "Advances in Prospect Theory: Cumulative Representation of Uncertainty," Journal of Risk and Uncertainty, Springer, vol. 5(4), pages 297-323, October.
- Marc Rieger & Mei Wang, 2006. "Cumulative prospect theory and the St. Petersburg paradox," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 28(3), pages 665-679, 08.
- Paul R. Koster & Erik T. Verhoef, 2010.
"A Rank Dependent Scheduling Model,"
Tinbergen Institute Discussion Papers
10-069/3, Tinbergen Institute, revised 26 Aug 2010.
- Vickrey, William S, 1969. "Congestion Theory and Transport Investment," American Economic Review, American Economic Association, vol. 59(2), pages 251-60, May.
- Quiggin, John, 1982. "A theory of anticipated utility," Journal of Economic Behavior & Organization, Elsevier, vol. 3(4), pages 323-343, December.
- Drazen Prelec, 1998. "The Probability Weighting Function," Econometrica, Econometric Society, vol. 66(3), pages 497-528, May.
- Small, Kenneth A, 1982. "The Scheduling of Consumer Activities: Work Trips," American Economic Review, American Economic Association, vol. 72(3), pages 467-79, June.
When requesting a correction, please mention this item's handle: RePEc:hhs:ctswps:2013_016. 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: (Mats Berggren)
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 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.