IDEAS home Printed from https://ideas.repec.org/a/kap/transp/v41y2014i4p717-743.html
   My bibliography  Save this article

Demand for taxi services: new elasticity evidence

Author

Listed:
  • John Rose
  • David Hensher

Abstract

This paper investigates the factors that influence the choice of, and hence demand for taxis services, a relatively neglected mode in the urban travel task. Given the importance of positioning preferences for taxi services within the broader set of modal options, we develop a modal choice model for all available modes of transport for trips undertaken by individuals or groups of individuals in a number of market segments. A sample of recent trips in Melbourne in 2012 was used to develop segment-specific mode choice models to obtain direct (and cross) elasticities of interest for cost and service level attributes. Given the nonlinear functional form of the way attributes of interest are included in the modal choice models, a simple set of mean elasticity estimates are not behaviourally meaningful; hence a decision support system is developed to enable the calculation of mean elasticity estimates under specific future service and pricing levels. Some specific direct elasticity estimates are provided as the basis of illustrating the magnitudes of elasticity estimates under likely policy settings. Copyright Springer Science+Business Media New York 2014

Suggested Citation

  • John Rose & David Hensher, 2014. "Demand for taxi services: new elasticity evidence," Transportation, Springer, vol. 41(4), pages 717-743, July.
    • Handle: RePEc:kap:transp:v:41:y:2014:i:4:p:717-743
    DOI: 10.1007/s11116-013-9482-5
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s11116-013-9482-5
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s11116-013-9482-5?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    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. Daniel Flores-Guri, 2003. "An Economic Analysis of Regulated Taxicab Markets," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 23(3_4), pages 255-266, December.
    2. Louviere,Jordan J. & Hensher,David A. & Swait,Joffre D. With contributions by-Name:Adamowicz,Wiktor, 2000. "Stated Choice Methods," Cambridge Books, Cambridge University Press, number 9780521788304, November.
    3. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521747387, November.
    4. Bliemer, Michiel C.J. & Rose, John M., 2011. "Experimental design influences on stated choice outputs: An empirical study in air travel choice," Transportation Research Part A: Policy and Practice, Elsevier, vol. 45(1), pages 63-79, January.
    5. Jeremy Toner, 2010. "The welfare effects of taxicab regulation in English towns," Economic Analysis and Policy, Elsevier, vol. 40(3), pages 299-312, December.
    6. John M. Rose & Michiel C. J. Bliemer, 2008. "Constructing Efficient Stated Choice Experimental Designs," Transport Reviews, Taylor & Francis Journals, vol. 29(5), pages 587-617, October.
    7. Bruce Schaller, 1999. "Elasticities for taxicab fares and service availability," Transportation, Springer, vol. 26(3), pages 283-297, August.
    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. García-Almeida, Desiderio Juan & Klassen, Norbert, 2017. "The influence of knowledge-based factors on taxi competitiveness at island destinations: An analysis on tips," Tourism Management, Elsevier, vol. 59(C), pages 110-122.
    2. Aarhaug, Jørgen & Fearnley, Nils & Hartveit, Knut Johannes Liland & Johnsson, Espen, 2023. "Price and competition in emerging shared e-scooter markets," Research in Transportation Economics, Elsevier, vol. 98(C).
    3. Yang, Zhuo & Franz, Mark L. & Zhu, Shanjiang & Mahmoudi, Jina & Nasri, Arefeh & Zhang, Lei, 2018. "Analysis of Washington, DC taxi demand using GPS and land-use data," Journal of Transport Geography, Elsevier, vol. 66(C), pages 35-44.
    4. Oh, Simon & Seshadri, Ravi & Azevedo, Carlos Lima & Kumar, Nishant & Basak, Kakali & Ben-Akiva, Moshe, 2020. "Assessing the impacts of automated mobility-on-demand through agent-based simulation: A study of Singapore," Transportation Research Part A: Policy and Practice, Elsevier, vol. 138(C), pages 367-388.
    5. Christensen, Peter & Osman, Adam, 2021. "The Demand for Mobility: Evidence from an Experiment with Uber Riders," IZA Discussion Papers 14179, Institute of Labor Economics (IZA).
    6. Wong, R.C.P. & Szeto, W.Y., 2018. "An alternative methodology for evaluating the service quality of urban taxis," Transport Policy, Elsevier, vol. 69(C), pages 132-140.
    7. McHardy, Jolian, 2024. "Platform business models and strategic price interaction," Transportation Research Part B: Methodological, Elsevier, vol. 182(C).
    8. Giancarlos Parady & Kay W. Axhausen, 2024. "Size matters: the use and misuse of statistical significance in discrete choice models in the transportation academic literature," Transportation, Springer, vol. 51(6), pages 2393-2425, December.
    9. Rose, John M. & Hensher, David A., 2018. "User satisfaction with taxi and limousine services in the Melbourne metropolitan area," Journal of Transport Geography, Elsevier, vol. 70(C), pages 234-245.

    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. Rose, John M. & Hensher, David A., 2018. "User satisfaction with taxi and limousine services in the Melbourne metropolitan area," Journal of Transport Geography, Elsevier, vol. 70(C), pages 234-245.
    2. Basu, Debasis & Hunt, John Douglas, 2012. "Valuing of attributes influencing the attractiveness of suburban train service in Mumbai city: A stated preference approach," Transportation Research Part A: Policy and Practice, Elsevier, vol. 46(9), pages 1465-1476.
    3. Koo, Tay T.R. & Hossein Rashidi, Taha & Park, Jin-Woo & Wu, Cheng-Lung & Tseng, Wen-Chun, 2017. "The effect of enhanced international air access on the demand for peripheral tourism destinations: Evidence from air itinerary choice behaviour of Korean visitors to Australia," Transportation Research Part A: Policy and Practice, Elsevier, vol. 106(C), pages 116-129.
    4. Rose, John M. & Bliemer, Michiel C.J. & Hensher, David A. & Collins, Andrew T., 2008. "Designing efficient stated choice experiments in the presence of reference alternatives," Transportation Research Part B: Methodological, Elsevier, vol. 42(4), pages 395-406, May.
    5. Saxena, N. & Rashidi, T.H. & Dixit, V.V. & Waller, S.T., 2019. "Modelling the route choice behaviour under stop-&-go traffic for different car driver segments," Transportation Research Part A: Policy and Practice, Elsevier, vol. 119(C), pages 62-72.
    6. Palhazi Cuervo, Daniel & Kessels, Roselinde & Goos, Peter & Sörensen, Kenneth, 2016. "An integrated algorithm for the optimal design of stated choice experiments with partial profiles," Transportation Research Part B: Methodological, Elsevier, vol. 93(PA), pages 648-669.
    7. Richard Yao & Riccardo Scarpa & John Rose & James Turner, 2015. "Experimental Design Criteria and Their Behavioural Efficiency: An Evaluation in the Field," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 62(3), pages 433-455, November.
    8. Frischknecht, Bart D. & Eckert, Christine & Geweke, John & Louviere, Jordan J., 2014. "A simple method for estimating preference parameters for individuals," International Journal of Research in Marketing, Elsevier, vol. 31(1), pages 35-48.
    9. Gołębiowska, Bernadeta & Bartczak, Anna & Budziński, Wiktor, 2021. "Impact of social comparison on preferences for Demand Side Management in Poland," Energy Policy, Elsevier, vol. 149(C).
    10. Kemperman, Astrid, 2021. "A review of research into discrete choice experiments in tourism: Launching the Annals of Tourism Research Curated Collection on Discrete Choice Experiments in Tourism," Annals of Tourism Research, Elsevier, vol. 87(C).
    11. Bjørnåvold, Amalie & David, Maia & Bohan, David A. & Gibert, Caroline & Rousselle, Jean-Marc & Van Passel, Steven, 2022. "Why does France not meet its pesticide reduction targets? Farmers' socio-economic trade-offs when adopting agro-ecological practices," Ecological Economics, Elsevier, vol. 198(C).
    12. Fifer, Simon & Rose, John & Greaves, Stephen, 2014. "Hypothetical bias in Stated Choice Experiments: Is it a problem? And if so, how do we deal with it?," Transportation Research Part A: Policy and Practice, Elsevier, vol. 61(C), pages 164-177.
    13. John M. Rose & Michiel C.J. Bliemer, 2014. "Stated choice experimental design theory: the who, the what and the why," Chapters, in: Stephane Hess & Andrew Daly (ed.), Handbook of Choice Modelling, chapter 7, pages 152-177, Edward Elgar Publishing.
    14. Zhifeng Gao & Ted C. Schroeder, 2009. "Consumer responses to new food quality information: are some consumers more sensitive than others?," Agricultural Economics, International Association of Agricultural Economists, vol. 40(3), pages 339-346, May.
    15. Ortega, David L. & Wang, H. Holly & Wu, Laping & Hong, Soo Jeong, 2015. "Retail channel and consumer demand for food quality in China," China Economic Review, Elsevier, vol. 36(C), pages 359-366.
    16. Yamada, Katsunori & Sato, Masayuki, 2013. "Another avenue for anatomy of income comparisons: Evidence from hypothetical choice experiments," Journal of Economic Behavior & Organization, Elsevier, vol. 89(C), pages 35-57.
    17. Potoglou, Dimitris & Palacios, Juan & Feijoo, Claudio & Gómez Barroso, Jose-Luis, 2015. "The supply of personal information: A study on the determinants of information provision in e-commerce scenarios," 26th European Regional ITS Conference, Madrid 2015 127174, International Telecommunications Society (ITS).
    18. Sant'Anna, Ana Claudia & Bergtold, Jason & Shanoyan, Aleksan & Caldas, Marcellus & Granco, Gabriel, 2021. "Deal or No Deal? Analysis of Bioenergy Feedstock Contract Choice with Multiple Opt-out Options and Contract Attribute Substitutability," 2021 Conference, August 17-31, 2021, Virtual 315289, International Association of Agricultural Economists.
    19. Choi, Andy S., 2013. "Nonmarket values of major resources in the Korean DMZ areas: A test of distance decay," Ecological Economics, Elsevier, vol. 88(C), pages 97-107.
    20. Doherty, Edel & Campbell, Danny, 2011. "Demand for improved food safety and quality: a cross-regional comparison," 85th Annual Conference, April 18-20, 2011, Warwick University, Coventry, UK 108791, Agricultural Economics Society.

    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:kap:transp:v:41:y:2014:i:4:p:717-743. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.