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Risk Aversion in Travel Mode Choice with Rank-Dependent Utility

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  • MATTHIEU DE LAPPARENT
  • MOSHE BEN-AKIVA

Abstract

Using 2004 stated preference data on travel mode collected in the Z�rich area, different parametric specifications of the rank-dependent utility function in a logit mixture model show that commuters are weakly averse to small-time losses. The results also justify Yaari's dual theory of choice under risk, that the utility function is linear on outcomes but that the perception of corresponding probabilities is biased. For leisure travel, the travelers are risk neutral to small losses of time.

Suggested Citation

  • Matthieu De Lapparent & Moshe Ben-Akiva, 2014. "Risk Aversion in Travel Mode Choice with Rank-Dependent Utility," Mathematical Population Studies, Taylor & Francis Journals, vol. 21(4), pages 189-204, December.
    • Handle: RePEc:taf:mpopst:v:21:y:2014:i:4:p:189-204
    DOI: 10.1080/08898480.2013.836415
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    References listed on IDEAS

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