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The User Costs of Air Travel Delay Variability

Author

Listed:
  • Paul Koster

    (VU University Amsterdam)

  • Eric Pels

    (VU University Amsterdam)

  • Erik Verhoef

    (VU University Amsterdam, the Netherlands)

Abstract

This discussion paper resulted in a publication in 'Transportation Science' . We derive the expected user costs of US domestic air travel delay variability taking into account scheduling behavior of travelers. Travelers do not only consider mean arrival delays, but also face scheduling costs because they arrive too early or too late at their destination. The model allows travelers to anticipate arrival delay variability by choosing an earlier flight. We show that the expected user costs of US air traffic delays are underestimated by 16% if arrival delay variability is ignored.

Suggested Citation

  • Paul Koster & Eric Pels & Erik Verhoef, 2013. "The User Costs of Air Travel Delay Variability," Tinbergen Institute Discussion Papers 13-056/VIII, Tinbergen Institute.
  • Handle: RePEc:tin:wpaper:20130056
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    References listed on IDEAS

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    Cited by:

    1. de Palma, André & Ordás Criado, Carlos & Randrianarisoa, Laingo M., 2018. "When Hotelling meets Vickrey. Service timing and spatial asymmetry in the airline industry," Journal of Urban Economics, Elsevier, vol. 105(C), pages 88-106.
    2. Ivaldi, Marc & Quinet, Emile & Urdanoz, Miguel & de Villemeur, Étienne, 2014. "The Social Cost of Air Traffic Delays," TSE Working Papers 14-545, Toulouse School of Economics (TSE).
    3. Ivaldi, Marc & Quinet, Emile & Urdanoz, Miguel & de Villemeur, Étienne, 2014. "Airlines, Delays, Social Optimum, Calibration," IDEI Working Papers 842, Institut d'Économie Industrielle (IDEI), Toulouse.
    4. Jorge Valido & M. Pilar Socorro & Francesca Medda, 2013. "DYPES: Vertical differentiation, schedule delay and entry deterrence: Low cost vs. full service airlines," Working Papers 2013-05, FEDEA.

    More about this item

    Keywords

    air traffic delay; travel time variability; scheduling; value of reliability;

    JEL classification:

    • R4 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics

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