Hjorth, Katrine and Fosgerau, Mogens (2012): Using prospect theory to investigate the low marginal value of travel time for small time changes. Published in: Transportation Research Part B , Vol. 46, : pp. 917932.

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Abstract
A common finding in stated preference studies that measure the value of travel time (VTT) is that the measured VTT increases with the size of the time change considered, in conflict with standard neoclassical economic theory. We present a new test of a possible explanation for the phenomenon that builds on the diminishing or constant sensitivity of the value functions in prospect theory. We use stated preference data with tradeoffs between travel time and money that provide separate identification of the degrees of diminishing sensitivity for time and money gains and losses. This enables us to test and potentially falsify the prospect theory explanation. We conclude that prospect theory remains a potential explanation of the phenomenon.
Item Type:  MPRA Paper 

Original Title:  Using prospect theory to investigate the low marginal value of travel time for small time changes 
Language:  English 
Keywords:  Value of travel time; Stated preference data; Prospect theory; Small time savings 
Subjects:  D  Microeconomics > D1  Household Behavior and Family Economics > D12  Consumer Economics: Empirical Analysis C  Mathematical and Quantitative Methods > C3  Multiple or Simultaneous Equation Models ; Multiple Variables > C35  Discrete Regression and Qualitative Choice Models ; Discrete Regressors ; Proportions R  Urban, Rural, Regional, Real Estate, and Transportation Economics > R4  Transportation Economics > R41  Transportation: Demand, Supply, and Congestion ; Travel Time ; Safety and Accidents ; Transportation Noise 
Item ID:  42246 
Depositing User:  Mogens Fosgerau 
Date Deposited:  28. Oct 2012 07:47 
Last Modified:  27. Aug 2015 16:34 
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URI:  https://mpra.ub.unimuenchen.de/id/eprint/42246 