The cost of travel time variability: three measures with properties

Engelson, Leonid and Fosgerau, Mogens (2016): The cost of travel time variability: three measures with properties. Forthcoming in: Transportation Research Part B (2016)

Abstract

This paper explores the relationships between three types of measures of the cost of travel time variability: measures based on scheduling preferences and implicit departure time choice, Bernoulli type measures based on a univariate function of travel time, and mean-dispersion measures. We characterise measures that are both scheduling measures and mean-dispersion measures and measures that are both Bernoulli and mean-dispersion. There are no measures that are both scheduling and Bernoulli. We consider the impact of requiring that measures are additive or homogeneous, proving also a new strong result on the utility rates in an additive scheduling measure. These insights are useful for selecting cost measures to use in applications.

• Item Type: MPRA Paper
• Language: English
• Keywords: value; travel time; variability; reliability
• Subjects: D - Microeconomics > D1 - Household Behavior and Family Economics; D - Microeconomics > D8 - Information, Knowledge, and Uncertainty; R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R4 - Transportation Economics

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