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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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    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 & Urdanoz, Miguel & de Villemeur, Étienne, 2007. "Social Costs of Air Traffic Delays," IDEI Working Papers 460, Institut d'Économie Industrielle (IDEI), Toulouse.
    3. Valido, Jorge & Socorro, M. Pilar & Medda, Francesca, 2020. "Airport capacity and entry deterrence: Low cost versus full service airlines," Economics of Transportation, Elsevier, vol. 22(C).
    4. 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.
    5. Li, Zhi-Chun & Huang, Hai-Jun & Yang, Hai, 2020. "Fifty years of the bottleneck model: A bibliometric review and future research directions," Transportation Research Part B: Methodological, Elsevier, vol. 139(C), pages 311-342.
    6. 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.

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    More about this item

    Keywords

    air traffic delay; travel time variability; scheduling; value of reliability;
    All these keywords.

    JEL classification:

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

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