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The value of travel time variance

By Mogens Fosgerau and Leonid Engelson

Abstract

This paper considers the value of travel time variability under scheduling preferences that are de�fined in terms of linearly time-varying utility rates associated with being at the origin and at the destination. The main result is a simple expression for the value of travel time variability that does not depend on the shape of the travel time distribution. The related measure of travel time variability is the variance of travel time. These conclusions apply equally to travellers who can freely choose departure time and to travellers who use a scheduled service with �fixed headway. Depending on parameters, travellers may be risk averse or risk seeking and the value of travel time may increase or decrease in the mean travel time.

Topics: D11 - Consumer Economics: Theory, R41 - Transportation: Demand, Supply, and Congestion; Safety and Accidents; Transportation Noise
Year: 2010
DOI identifier: 10.1016/j.trb.2010.06.001
OAI identifier: oai:mpra.ub.uni-muenchen.de:42272

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