IDEAS home Printed from https://ideas.repec.org/a/eee/transa/v38y2004i8p551-571.html
   My bibliography  Save this article

Theoretical analysis on the variation of value of travel time savings

Author

Listed:
  • Jiang, Meilan
  • Morikawa, Takayuki

Abstract

This paper theoretically examines whether and how the value of travel time savings changes with the travel and individual socio-economic environments. A time allocation model for the general case of travel behavior is proposed following a review of basic theories of the value of time. Under some general assumptions, changes of value of travel time savings with travel time, travel cost, wage rate, and work time are examined by the comparative static analysis. Differences between the variation of the value of travel time savings and value of time as a resource are also discussed. The results provide the variation mechanisms of the value of time and verify some of the results of empirical studies.

Suggested Citation

  • Jiang, Meilan & Morikawa, Takayuki, 2004. "Theoretical analysis on the variation of value of travel time savings," Transportation Research Part A: Policy and Practice, Elsevier, vol. 38(8), pages 551-571, October.
    • Handle: RePEc:eee:transa:v:38:y:2004:i:8:p:551-571
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0965-8564(04)00039-4
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Lam, Terence C. & Small, Kenneth A., 0. "The value of time and reliability: measurement from a value pricing experiment," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 37(2-3), pages 231-251, April.
    2. Sergio Jara-Díaz, 2003. "On the goods-activities technical relations in the time allocation theory," Transportation, Springer, vol. 30(3), pages 245-260, August.
    3. Evans, Alan W, 1972. "On the Theory of the Valuation and Allocation of Time," Scottish Journal of Political Economy, Scottish Economic Society, vol. 19(1), pages 1-17, February.
    4. David A. Hensher, 2001. "Measurement of the Valuation of Travel Time Savings," Journal of Transport Economics and Policy, University of Bath, vol. 35(1), pages 71-98, January.
    5. Small, Kenneth A., 2001. "The Value of Pricing," University of California Transportation Center, Working Papers qt0rm449sx, University of California Transportation Center.
    6. Noland, Robert B. & Small, Kenneth A. & Koskenoja, Pia Maria & Chu, Xuehao, 1998. "Simulating travel reliability," Regional Science and Urban Economics, Elsevier, vol. 28(5), pages 535-564, September.
    7. Vickrey, William S, 1969. "Congestion Theory and Transport Investment," American Economic Review, American Economic Association, vol. 59(2), pages 251-260, May.
    8. Mackie, P.J. & Jara-Díaz, S. & Fowkes, A.S., 0. "The value of travel time savings in evaluation," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 37(2-3), pages 91-106, April.
    9. 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.
    10. Bhat, Chandra R., 1998. "Accommodating variations in responsiveness to level-of-service measures in travel mode choice modeling," Transportation Research Part A: Policy and Practice, Elsevier, vol. 32(7), pages 495-507, September.
    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. de Donnea, F. X., 1972. "Consumer behaviour, transport mode choice and value of time: Some micro-economic models," Regional and Urban Economics, Elsevier, vol. 1(4), pages 355-382, February.
    13. Small, Kenneth A, 1982. "The Scheduling of Consumer Activities: Work Trips," American Economic Review, American Economic Association, vol. 72(3), pages 467-479, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Chakrabarti, Sandip & Giuliano, Genevieve, 2015. "Does service reliability determine transit patronage? Insights from the Los Angeles Metro bus system," Transport Policy, Elsevier, vol. 42(C), pages 12-20.
    2. Beaud, Mickael & Blayac, Thierry & Stéphan, Maïté, 2016. "The impact of travel time variability and travelers’ risk attitudes on the values of time and reliability," Transportation Research Part B: Methodological, Elsevier, vol. 93(PA), pages 207-224.
    3. Kenneth A. Small & Clifford Winston & Jia Yan, 2005. "Differentiated Road Pricing, Express Lanes and Carpools: Exploiting Heterogeneous Preferences in Policy Design," Working Papers 050616, University of California-Irvine, Department of Economics, revised Mar 2006.
    4. Liu, Henry X. & He, Xiaozheng & Recker, Will, 2007. "Estimation of the time-dependency of values of travel time and its reliability from loop detector data," Transportation Research Part B: Methodological, Elsevier, vol. 41(4), pages 448-461, May.
    5. Kim, Nam Seok & Yook, Donghyung, 2018. "Enhancing the economic benefit assessment of roadway investment through the application of value of time by trip length," Transport Policy, Elsevier, vol. 68(C), pages 28-36.
    6. Zhao, Jian & Zhao, Yunyi & Li, Ying, 2015. "The variation in the value of travel-time savings and the dilemma of high-speed rail in China," Transportation Research Part A: Policy and Practice, Elsevier, vol. 82(C), pages 130-140.
    7. Castro, Marisol & Bhat, Chandra R. & Pendyala, Ram M. & Jara-Díaz, Sergio R., 2012. "Accommodating multiple constraints in the multiple discrete–continuous extreme value (MDCEV) choice model," Transportation Research Part B: Methodological, Elsevier, vol. 46(6), pages 729-743.
    8. Barry Ubbels & Yin-Yen Tseng & Erik T. Verhoef, 2005. "Value of time, schedule delay and reliability - estimates based on choice behaviour of Dutch commuters facing congestion," ERSA conference papers ersa05p202, European Regional Science Association.
    9. De Borger, Bruno & Fosgerau, Mogens, 2008. "The trade-off between money and travel time: A test of the theory of reference-dependent preferences," Journal of Urban Economics, Elsevier, vol. 64(1), pages 101-115, July.
    10. Sandip Chakrabarti & Genevieve Giuliano, 2014. "Does service reliability influence transit patronage? Evidence from Los Angeles, and implications for transit policy," Working Paper 9297, USC Lusk Center for Real Estate.
    11. Schmid, Basil & Molloy, Joseph & Peer, Stefanie & Jokubauskaite, Simona & Aschauer, Florian & Hössinger, Reinhard & Gerike, Regine & Jara-Diaz, Sergio R. & Axhausen, Kay W., 2021. "The value of travel time savings and the value of leisure in Zurich: Estimation, decomposition and policy implications," Transportation Research Part A: Policy and Practice, Elsevier, vol. 150(C), pages 186-215.
    12. Binsuwadan, Jawaher & Wardman, Mark & de Jong, Gerard & Batley, Richard & Wheat, Phill, 2023. "The income elasticity of the value of travel time savings: A meta-analysis," Transport Policy, Elsevier, vol. 136(C), pages 126-136.
    13. Odeck, James & Aasness, Marie Aarestrup, 2024. "What are the determinants of road users' experiences with congestion: Econometric assessment using ordered response models," Research in Transportation Economics, Elsevier, vol. 104(C).
    14. Sang-Hyun Han & Woo-Hee Byun & Timothy Jeonglyeol Lee & Choong-Ki Lee, 2013. "Research Note: Travel Time as a Proxy for Travel Cost in a Heritage Tourist Destination," Tourism Economics, , vol. 19(6), pages 1467-1474, December.
    15. Börjesson, Maria & Fosgerau, Mogens & Algers, Staffan, 2012. "On the income elasticity of the value of travel time," Transportation Research Part A: Policy and Practice, Elsevier, vol. 46(2), pages 368-377.
    16. Poudel, Niranjan & Singleton, Patrick A., 2024. "Willingness to pay for changes in travel time and work time: A stated choice experiment of US commuters," Research in Transportation Economics, Elsevier, vol. 103(C).
    17. Nicanor R. Roxas & Alexis M. Fillone, 2016. "Establishing value of time for the inter-island passenger transport of the Western Visayas region, Philippines," Transportation, Springer, vol. 43(4), pages 661-676, July.
    18. Teichert, Thorsten & Shehu, Edlira & von Wartburg, Iwan, 2008. "Customer segmentation revisited: The case of the airline industry," Transportation Research Part A: Policy and Practice, Elsevier, vol. 42(1), pages 227-242, January.
    19. Ahlheim, Michael & Frör, Oliver & Heinke, Antonia & Duc, Nguyen Minh & Dinh, Pham Van, 2010. "Labour as a utility measure in contingent valuation studies: how good is it really?," FZID Discussion Papers 13-2010, University of Hohenheim, Center for Research on Innovation and Services (FZID).
    20. Hongli Xu & Hai Yang & Jing Zhou & Yafeng Yin, 2017. "A Route Choice Model with Context-Dependent Value of Time," Transportation Science, INFORMS, vol. 51(2), pages 536-548, May.

    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. Bhat, Chandra R. & Sardesai, Rupali, 2006. "The impact of stop-making and travel time reliability on commute mode choice," Transportation Research Part B: Methodological, Elsevier, vol. 40(9), pages 709-730, November.
    2. Börjesson, Maria & Eliasson, Jonas & Franklin, Joel, 2012. "Valuations of travel time variability in scheduling versus mean-variance models," Working papers in Transport Economics 2012:2, CTS - Centre for Transport Studies Stockholm (KTH and VTI).
    3. Chakrabarti, Sandip & Giuliano, Genevieve, 2015. "Does service reliability determine transit patronage? Insights from the Los Angeles Metro bus system," Transport Policy, Elsevier, vol. 42(C), pages 12-20.
    4. Chikako Keumi & Hideki Murakami, 2010. "Role of schedule delays on passengers' choice of access modes: A case of Japan' s international airport," Discussion Papers 2010-59, Kobe University, Graduate School of Business Administration.
    5. Soriguera, Francesc, 2014. "On the value of highway travel time information systems," Transportation Research Part A: Policy and Practice, Elsevier, vol. 70(C), pages 294-310.
    6. Wang, Qian & Sundberg, Marcus & Karlström, Anders, 2013. "Scheduling choices under rank dependent utility maximization," Working papers in Transport Economics 2013:16, CTS - Centre for Transport Studies Stockholm (KTH and VTI).
    7. Stefanie Peer & Erik Verhoef & Jasper Knockaert & Paul Koster & Yin‐Yen Tseng, 2015. "Long‐Run Versus Short‐Run Perspectives On Consumer Scheduling: Evidence From A Revealed‐Preference Experiment Among Peak‐Hour Road Commuters," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 56(1), pages 303-323, February.
    8. Hess, Stephane & Bierlaire, Michel & Polak, John W., 2005. "Estimation of value of travel-time savings using mixed logit models," Transportation Research Part A: Policy and Practice, Elsevier, vol. 39(2-3), pages 221-236.
    9. Fosgerau, Mogens & Karlström, Anders, 2010. "The value of reliability," Transportation Research Part B: Methodological, Elsevier, vol. 44(1), pages 38-49, January.
    10. Liu, Wei & Yin, Yafeng & Yang, Hai, 2015. "Effectiveness of variable speed limits considering commuters’ long-term response," Transportation Research Part B: Methodological, Elsevier, vol. 81(P2), pages 498-519.
    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. Teppei Kato & Kenetsu Uchida & William H. K. Lam & Agachai Sumalee, 2021. "Estimation of the value of travel time and of travel time reliability for heterogeneous drivers in a road network," Transportation, Springer, vol. 48(4), pages 1639-1670, August.
    13. Börjesson, Maria & Eliasson, Jonas, 2011. "On the use of "average delay" as a measure of train reliability," Transportation Research Part A: Policy and Practice, Elsevier, vol. 45(3), pages 171-184, March.
    14. Javier Asensio & Anna Matas, 2007. "Commuters’ valuation of travel time variability in Barcelona," Working Papers wpdea0701, Department of Applied Economics at Universitat Autonoma of Barcelona.
    15. Keumi, Chikako & Murakami, Hideki, 2012. "The role of schedule delays on passengers’ choice of access modes: A case study of Japan’s international hub airports," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 48(5), pages 1023-1031.
    16. Paul Koster & Hans Koster, 2013. "Analysing Heterogeneity in the Value of Travel Time and Reliability: A Semiparametric Estimation Approach," ERSA conference papers ersa13p1032, European Regional Science Association.
    17. Thorhauge, Mikkel & Cherchi, Elisabetta & Rich, Jeppe, 2016. "How flexible is flexible? Accounting for the effect of rescheduling possibilities in choice of departure time for work trips," Transportation Research Part A: Policy and Practice, Elsevier, vol. 86(C), pages 177-193.
    18. Stefanie Peer & Erik Verhoef & Jasper Knockaert & Paul Koster & Yin-Yen Tseng, 2011. "Long-Run vs. Short-Run Perspectives on Consumer Scheduling: Evidence from a Revealed-Preference Experiment among Peak-Hour Road Commuters," Tinbergen Institute Discussion Papers 11-181/3, Tinbergen Institute, revised 25 Aug 2014.
    19. Agarwal, Sumit & Diao, Mi & Keppo, Jussi & Sing, Tien Foo, 2020. "Preferences of public transit commuters: Evidence from smart card data in Singapore," Journal of Urban Economics, Elsevier, vol. 120(C).
    20. Peer, Stefanie & Knockaert, Jasper & Verhoef, Erik T., 2016. "Train commuters’ scheduling preferences: Evidence from a large-scale peak avoidance experiment," Transportation Research Part B: Methodological, Elsevier, vol. 83(C), pages 314-333.

    More about this item

    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:eee:transa:v:38:y:2004:i:8:p:551-571. 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/547/description#description .

    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.