Value of Time by Time of Day: A Stated-Preference Study

TI Discussion Paper No. 07-061/3

17 Pages Posted: 29 Aug 2007

See all articles by Yin‐Yen Tseng

Yin‐Yen Tseng

VU University Amsterdam - Department of Spatial Economics

Erik T. Verhoef

VU University Amsterdam - Department of Spatial Economics; Vrije Universiteit Amsterdam, School of Business and Economics; Tinbergen Institute

Date Written: August 2007

Abstract

This paper proposes an alternative, dynamic framework for estimating time-varying values of travel time savings and values of schedule delay, in which time-preferences are represented as the time-varying excess willingness to pay (EWPT) to being in the one location, over being elsewhere. It is shown how the conventional linear model, with time-independent values of travel time savings and schedule delay costs, is a special case of our model, and that it is implausible particularly in that it implicitly assumes that the willingness to pay for spending a minute at home instead of being in the vehicle does not vary by time of day, even not for very early departures. The framework is applied to SP data representing the respondents' departure time choices for the morning commute. The results suggest that individuals' time-related shadow prices indeed vary strongly over the morning peak, and values of travel time savings are consequently strongly time-dependent, following plausible and intuitive patterns.

Keywords: Value of Travel Time Savings, Value of Schedule Delay, Value of Unreliability, Stated Choice

JEL Classification: R41, D12

Suggested Citation

Tseng, Yin-Yen and Verhoef, Erik T., Value of Time by Time of Day: A Stated-Preference Study (August 2007). TI Discussion Paper No. 07-061/3, Available at SSRN: https://ssrn.com/abstract=1010556 or http://dx.doi.org/10.2139/ssrn.1010556

Yin-Yen Tseng (Contact Author)

VU University Amsterdam - Department of Spatial Economics ( email )

De Boelelaan 1105
1081HV Amsterdam
Netherlands

Erik T. Verhoef

VU University Amsterdam - Department of Spatial Economics ( email )

De Boelelaan 1105
1081HV Amsterdam
Netherlands
+31 020 4446094 (Phone)
+31 020 4446004 (Fax)

Vrije Universiteit Amsterdam, School of Business and Economics ( email )

De Boelelaan 1105
Amsterdam, 1081HV
Netherlands

Tinbergen Institute ( email )

Gustav Mahlerplein 117
Amsterdam, 1082 MS
Netherlands

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