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The Demand for Intercity Public Transport: The Case of Business Passengers

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  • Carlsson, Fredrik

    () (Department of Economics, School of Economics and Commercial Law, Göteborg University)

Abstract

Using a stated preference survey on business passengers travelling with rail or air between the two largest cities in Sweden, we investigate business passengers' preferences for different modes of transport and their corresponding attributes. We explore the usefulness of a more flexible specification of the demand for transport by using a random parameter logit (RPL) model. In the paper we find that there is a gain in using an RPL model compared to a fixed effect model, in the sense that it provides richer information about the passengers' preferences. However, we also find that the valuation of attributes does not significantly differ between a standard logit and an RPL model. Compared to what previous studies have found, the values put on attributes are very high, this including the environmental impact of the modes. This is largely explained by the fact that business passengers do not bear the cost of the trip, but still have the possibility if deciding mode of transport.

Suggested Citation

  • Carlsson, Fredrik, 1999. "The Demand for Intercity Public Transport: The Case of Business Passengers," Working Papers in Economics 12, University of Gothenburg, Department of Economics.
  • Handle: RePEc:hhs:gunwpe:0012
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    References listed on IDEAS

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    Cited by:

    1. Francisco Javier Amador & Rosa Marina González & Juan de Dios Ortúzar, 2004. "Preference heterogeneity and willingness to pay for travel time," Documentos de trabajo conjunto ULL-ULPGC 2004-12, Facultad de Ciencias Económicas de la ULPGC.
    2. Martine AUDIBERT & Yong HE & Jacky MATHONNAT, 2017. "What does demand heterogeneity tell us about health care provider choice in rural China?," Working Papers P193, FERDI.
    3. Ibeas, A. & dell’Olio, L. & Bordagaray, M. & Ortúzar, J. de D., 2014. "Modelling parking choices considering user heterogeneity," Transportation Research Part A: Policy and Practice, Elsevier, vol. 70(C), pages 41-49.
    4. Francisco Javier Amador Morera & Rosa Marina González Marrero, 2005. "Value of Travel Time Savings for University Students and Preference Heterogeneity," Hacienda Pública Española, IEF, vol. 174(3), pages 25-41, September.
    5. Phanikumar, C.V. & Maitra, Bhargab, 2006. "Modeling Willingness-to-Pay Values for Rural Bus Attributes Under Different Trip Purposes," Journal of the Transportation Research Forum, Transportation Research Forum, vol. 45(2).
    6. Martine AUDIBERT & Yong HE & Jacky MATHONNAT, 2017. "What does demand heterogeneity tell us about health care provider choice in rural China?," Working Papers P193, FERDI.
    7. Martine Audibert & Yong He & Jacky Mathonnat, 2013. "Multinomial and Mixed Logit Modeling in the Presence of Heterogeneity: A Two-Period Comparison of Healthcare Provider Choice in Rural China," Working Papers halshs-00846085, HAL.
    8. Yeonbae Kim & Jeong-Dong Lee & Daeyoung Koh, 2005. "Effects of consumer preferences on the convergence of mobile telecommunications devices," Applied Economics, Taylor & Francis Journals, vol. 37(7), pages 817-826.
    9. Caussade, Sebastián & Ortúzar, Juan de Dios & Rizzi, Luis I. & Hensher, David A., 2005. "Assessing the influence of design dimensions on stated choice experiment estimates," Transportation Research Part B: Methodological, Elsevier, vol. 39(7), pages 621-640, August.
    10. Bilbao Ubillos, J. & Fernández Sainz, A., 2004. "The influence of quality and price on the demand for urban transport: the case of university students," Transportation Research Part A: Policy and Practice, Elsevier, vol. 38(8), pages 607-614, October.
    11. 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.
    12. Unger, Orit & Uriely, Natan & Fuchs, Galia, 2016. "The business travel experience," Annals of Tourism Research, Elsevier, vol. 61(C), pages 142-156.

    More about this item

    Keywords

    Business passengers; Intercity transport; Random parameter logit;

    JEL classification:

    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise

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