Working papers in Transport Economics
On the other half of the story: allowing for discrete penalties for excessive travel times in scheduling models
(), Marcus Sundberg
() and Anders Karlström
Abstract: In this paper, we introduce a discrete penalty for
excessive travel times into scheduling models whose maximal expected
utilities have attractive theoretical features of linearity in standard
deviation or variance. The extended models maintain the properties of
linearity, and its maximal expected utility depends on the shape of the
travel time distribution. The value of travel time and its variability
could be measured indirectly by the scheduling preferences. The results
from empirical data reveal that the extended models, with such a discrete
penalty, provide a highly significant better goodness of fit to the data.
Furthermore, introducing the penalty for excessive travel time has a strong
effect on the estimates of the other scheduling parameters, thus affecting
the valuations of travel time. Our findings indicate that, apart from the
mean and standard deviation (or variance), individuals value other
characteristics of travel time distribution, in particular the probability
of excessive travel time.
Keywords: Scheduling preferences; Travel time variability; Asymmetric travel time distribution; Excessive travel time; (follow links to similar papers)
JEL-Codes: R40; (follow links to similar papers)
21 pages, September 19, 2013
This paper is presented on internal and external seminars, and presented at the annual conference of the International Association of transportation Economics (ITEA Kuhmo Nectar), in Berlin June 2012.
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