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Uncovering the Distribution of Motorists' Preferences for Travel Time and Reliability
Author(s) -
Small Kenneth A.,
Winston Clifford,
Yan Jia
Publication year - 2005
Publication title -
econometrica
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 16.7
H-Index - 199
eISSN - 1468-0262
pISSN - 0012-9682
DOI - 10.1111/j.1468-0262.2005.00619.x
Subject(s) - toll , mixed logit , reliability (semiconductor) , road pricing , economics , econometrics , preference , distribution (mathematics) , revealed preference , logit , travel time , welfare , discrete choice , transport engineering , traffic congestion , computer science , microeconomics , logistic regression , engineering , mathematics , mathematical analysis , power (physics) , physics , quantum mechanics , market economy , genetics , machine learning , biology
We apply recent econometric advances to study the distribution of commuters' preferences for speedy and reliable highway travel. Our analysis applies mixed logit to combined revealed and stated preference data on commuter choices of whether to pay a toll for congestion‐free express travel. We find that motorists exhibit high values of travel time and reliability, and substantial heterogeneity in those values. We suggest that road pricing policies designed to cater to such varying preferences can improve efficiency and reduce the disparity of welfare impacts compared with recent pricing experiments.