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We analyse mode choice behaviour for suburban trips in the Grand Canary island using mixed revealed preference (RP)/stated preference (SP) information. The SP choice experiment allowed for interactions among the main policy variables: travel cost, travel time and frequency, and also to test the influence of latent variables such as comfort. It also led to discuss additional requirements on the size and sign of the estimated model parameters, to assess model quality when interactions are present. The RP survey produced data on actual trip behaviour and was used to adapt the SP choice experiment. During the specification searches we detected the presence of income effect and were able to derive willingness-to-pay measures, such as the subjective value of time, which varied among individuals. We also studied the systematic heterogeneity in individual tastes through the specification of models allowing for interactions between level-of-service and socio-economic variables. We concluded examining the sensitivity of travellers’ behaviour to various policy scenarios. In particular, it seems that contrary to political opinion, in a crowded island policies penalising the use of the private car seem to have a far greater impact in terms of bus patronage than policies implying direct improvements to the public transport service. Copyright Springer 2006discrete choice models, interaction effects, latent variable, revealed preference, stated preference, willingness-to-pay,

Analysing Demand for Suburban Trips: A Mixed RP/SP Model with Latent Variables and Interaction Effects