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Measurements and properties of the values of time and reliability

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  • Mickaël Beaud
  • Thierry Blayac
  • Maïté Stéphan

Abstract

This paper derives new monetary measures of traveler’s willingness to pay to save travel time and to improve its reliability. We develop an intuitive model of transport mode choice in which each alternative is fully characterized by its price and the distribution of its random travel time, assuming expected utility preferences over the latter. Hence, the value of time (VOT) and the value of reliability (VOR) are defined and theirs properties are established. Finally, we use data from a discrete choice experiment in stated preferences to illustrate how our measures can provide behavioral estimations of the VOT and the VOR.

Suggested Citation

  • Mickaël Beaud & Thierry Blayac & Maïté Stéphan, 2014. "Measurements and properties of the values of time and reliability," Working Papers 14-06, LAMETA, Universtiy of Montpellier, revised Jul 2014.
  • Handle: RePEc:lam:wpaper:14-06
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    File URL: http://www.lameta.univ-montp1.fr/Documents/DR2014-06.pdf
    File Function: Revised version, 2014
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    References listed on IDEAS

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    12. Rothschild, Michael & Stiglitz, Joseph E., 1970. "Increasing risk: I. A definition," Journal of Economic Theory, Elsevier, vol. 2(3), pages 225-243, September.
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