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Indifference Bands for Route Switching

Author

Listed:
  • Xuan Di
  • Henry X. Liu
  • Shanjiang Zhu
  • David Levinson

    (Nexus (Networks, Economics, and Urban Systems) Research Group, Department of Civil Engineering, University of Minnesota)

Abstract

The replacement I-35W bridge in Minneapolis saw less traffic than the original bridge though it provided substantial travel time saving for many travelers. This observation cannot be explained by the classical route choice assumption that travelers always take the shortest path. Accordingly, a boundedly rational route switching model is proposed assuming that travelers will not switch to the new bridge unless travel time saving goes beyond a threshold or indifference band. To validate the boundedly rational route switching assumption, route choices of 78 subjects from a GPS travel behavior study were analyzed before and after the addition of the new I-35W bridge. Indifference bands are estimated for both commuters who were previously bridge users and those who never had the experience of using the old bridge. This study offers the first empirical estimation of bounded rationality parameters from GPS data and provides guidelines for traffic assignment.

Suggested Citation

  • Xuan Di & Henry X. Liu & Shanjiang Zhu & David Levinson, 2014. "Indifference Bands for Route Switching," Working Papers 000123, University of Minnesota: Nexus Research Group.
    • Handle: RePEc:nex:wpaper:indifferencebandsforrouteswitching
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    File URL: http://hdl.handle.net/11299/180078
    File Function: First version, 2014
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    References listed on IDEAS

    as
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    JEL classification:

    • R40 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - General

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