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Selfishness and Altruism in the Distribution of Travel Time and Income

Author

Listed:
  • Nebiyou Tilahun
  • David Levinson

    (Nexus (Networks, Economics, and Urban Systems) Research Group, Department of Civil Engineering, University of Minnesota)

Abstract

Most economic models assume that individuals act out their preferences based on their own self interest. However there have also been other paradigms in the economics literature that have tried to capture alternative manifestations of human behavior that include fairness. This study examines people's preferences when it comes to their travel time and their income and what type of trade offs they are willing to make to live in a society where the distributions of travel time and income are fairer. Using a stated preference experiment we find that when it comes to travel time, individuals are more concerned with societal average travel time, followed by their own travel time and finally by large inequalities in the society, while in the case of income they are more concerned with their own income, followed by societal average and finally by inequality.

Suggested Citation

  • Nebiyou Tilahun & David Levinson, 2006. "Selfishness and Altruism in the Distribution of Travel Time and Income," Working Papers 000023, University of Minnesota: Nexus Research Group.
    • Handle: RePEc:nex:wpaper:selfishness
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    File URL: http://hdl.handle.net/11299/180036
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    References listed on IDEAS

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    1. Ernst Fehr & Klaus M. Schmidt, 1999. "A Theory of Fairness, Competition, and Cooperation," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 114(3), pages 817-868.
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    More about this item

    Keywords

    Fairness; Inequality; Travel Time; Income; Altruism; Stated Preference; Veil of ignorance; Equity; Time equity; Income Equity; Time distribution; Income Distribution.;
    All these keywords.

    JEL classification:

    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise
    • R42 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government and Private Investment Analysis; Road Maintenance; Transportation Planning
    • R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D10 - Microeconomics - - Household Behavior - - - General
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior

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