[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/42272.html
   My bibliography  Save this paper

The value of travel time variance

Author

Listed:
  • Fosgerau, Mogens
  • Engelson, Leonid
Abstract
This paper considers the value of travel time variability under scheduling preferences that are de�fined in terms of linearly time-varying utility rates associated with being at the origin and at the destination. The main result is a simple expression for the value of travel time variability that does not depend on the shape of the travel time distribution. The related measure of travel time variability is the variance of travel time. These conclusions apply equally to travellers who can freely choose departure time and to travellers who use a scheduled service with �fixed headway. Depending on parameters, travellers may be risk averse or risk seeking and the value of travel time may increase or decrease in the mean travel time.

Suggested Citation

  • Fosgerau, Mogens & Engelson, Leonid, 2010. "The value of travel time variance," MPRA Paper 42272, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:42272
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/42272/1/MPRA_paper_42272.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Tseng, Yin-Yen & Verhoef, Erik T., 2008. "Value of time by time of day: A stated-preference study," Transportation Research Part B: Methodological, Elsevier, vol. 42(7-8), pages 607-618, August.
    2. DeSerpa, A C, 1971. "A Theory of the Economics of Time," Economic Journal, Royal Economic Society, vol. 81(324), pages 828-846, December.
    3. Bates, John & Polak, John & Jones, Peter & Cook, Andrew, 0. "The valuation of reliability for personal travel," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 37(2-3), pages 191-229, April.
    4. Fosgerau, Mogens, 2009. "The marginal social cost of headway for a scheduled service," Transportation Research Part B: Methodological, Elsevier, vol. 43(8-9), pages 813-820, September.
    5. Fosgerau, Mogens & Karlström, Anders, 2010. "The value of reliability," Transportation Research Part B: Methodological, Elsevier, vol. 44(1), pages 38-49, January.
    6. Wang, James Jixian, 1996. "Timing utility of daily activities and its impact on travel," Transportation Research Part A: Policy and Practice, Elsevier, vol. 30(3), pages 189-206, May.
    7. Arnott, Richard & de Palma, Andre & Lindsey, Robin, 1993. "A Structural Model of Peak-Period Congestion: A Traffic Bottleneck with Elastic Demand," American Economic Review, American Economic Association, vol. 83(1), pages 161-179, March.
    8. Kenneth A. Small & Clifford Winston & Jia Yan, 2005. "Uncovering the Distribution of Motorists' Preferences for Travel Time and Reliability," Econometrica, Econometric Society, vol. 73(4), pages 1367-1382, July.
    9. Zhang, Xiaoning & Yang, Hai & Huang, Hai-Jun & Zhang, H. Michael, 2005. "Integrated scheduling of daily work activities and morning-evening commutes with bottleneck congestion," Transportation Research Part A: Policy and Practice, Elsevier, vol. 39(1), pages 41-60, January.
    10. Vickrey, William S, 1969. "Congestion Theory and Transport Investment," American Economic Review, American Economic Association, vol. 59(2), pages 251-260, May.
    11. Gunn, Hugh, 0. "Spatial and temporal transferability of relationships between travel demand, trip cost and travel time," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 37(2-3), pages 163-189, April.
    12. Small, Kenneth A, 1982. "The Scheduling of Consumer Activities: Work Trips," American Economic Review, American Economic Association, vol. 72(3), pages 467-479, June.
    13. Anthony J. Moore & Paul P. Jovanis & Frank S. Koppelman, 1984. "Modeling the Choice of Work Schedule with Flexible Work Hours," Transportation Science, INFORMS, vol. 18(2), pages 141-164, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Carrion, Carlos & Levinson, David, 2012. "Value of travel time reliability: A review of current evidence," Transportation Research Part A: Policy and Practice, Elsevier, vol. 46(4), pages 720-741.
    2. Small, Kenneth A., 2012. "Valuation of travel time," Economics of Transportation, Elsevier, vol. 1(1), pages 2-14.
    3. Xiao, Yu & Fukuda, Daisuke, 2015. "On the cost of misperceived travel time variability," Transportation Research Part A: Policy and Practice, Elsevier, vol. 75(C), pages 96-112.
    4. Kenneth Small, 2015. "The Bottleneck Model: An Assessment and Interpretation," Working Papers 141506, University of California-Irvine, Department of Economics.
    5. Small, Kenneth A., 2015. "The bottleneck model: An assessment and interpretation," Economics of Transportation, Elsevier, vol. 4(1), pages 110-117.
    6. Jenelius, Erik & Mattsson, Lars-Göran & Levinson, David, 2011. "Traveler delay costs and value of time with trip chains, flexible activity scheduling and information," Transportation Research Part B: Methodological, Elsevier, vol. 45(5), pages 789-807, June.
    7. Engelson, Leonid & Fosgerau, Mogens, 2011. "Additive measures of travel time variability," Transportation Research Part B: Methodological, Elsevier, vol. 45(10), pages 1560-1571.
    8. André de Palma & Mogens Fosgerau, 2011. "Dynamic Traffic Modeling," Chapters, in: André de Palma & Robin Lindsey & Emile Quinet & Roger Vickerman (ed.), A Handbook of Transport Economics, chapter 9, Edward Elgar Publishing.
    9. Hjorth, Katrine & Börjesson, Maria & Engelson, Leonid & Fosgerau, Mogens, 2015. "Estimating exponential scheduling preferences," Transportation Research Part B: Methodological, Elsevier, vol. 81(P1), pages 230-251.
    10. Pudāne, Baiba, 2019. "Departure Time Choice and Bottleneck Congestion with Automated Vehicles: Role of On-board Activities," MPRA Paper 96328, University Library of Munich, Germany.
    11. Abegaz, Dereje & Hjorth, Katrine & Rich, Jeppe, 2017. "Testing the slope model of scheduling preferences on stated preference data," Transportation Research Part B: Methodological, Elsevier, vol. 104(C), pages 409-436.
    12. Jenelius, Erik, 2012. "The value of travel time variability with trip chains, flexible scheduling and correlated travel times," Transportation Research Part B: Methodological, Elsevier, vol. 46(6), pages 762-780.
    13. Raux, Charles & Souche, Stéphanie & Pons, Damien, 2012. "The efficiency of congestion charging: Some lessons from cost–benefit analyses," Research in Transportation Economics, Elsevier, vol. 36(1), pages 85-92.
    14. Benezech, Vincent & Coulombel, Nicolas, 2013. "The value of service reliability," Transportation Research Part B: Methodological, Elsevier, vol. 58(C), pages 1-15.
    15. 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.
    16. Li, Zhi-Chun & Lam, William H.K. & Wong, S.C., 2014. "Bottleneck model revisited: An activity-based perspective," Transportation Research Part B: Methodological, Elsevier, vol. 68(C), pages 262-287.
    17. Nicolas Coulombel & André de Palma, 2014. "The marginal social cost of travel time variability," Post-Print hal-01100105, HAL.
    18. Fosgerau, Mogens & Karlström, Anders, 2010. "The value of reliability," Transportation Research Part B: Methodological, Elsevier, vol. 44(1), pages 38-49, January.
    19. Zhaoqi Zang & Xiangdong Xu & Kai Qu & Ruiya Chen & Anthony Chen, 2022. "Travel time reliability in transportation networks: A review of methodological developments," Papers 2206.12696, arXiv.org, revised Jul 2022.
    20. André de Palma & Mogens Fosgerau, 2010. "Dynamic and Static congestion models: A review," Working Papers hal-00539166, HAL.

    More about this item

    Keywords

    Value of travel time; Value of travel time variability; Reliability; Scheduling preferences;
    All these keywords.

    JEL classification:

    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:42272. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.