Stated Preference Approach for Valuation of Travel Time Displayed as Traffic Information on a VMS Board
Publication: Journal of Urban Planning and Development
Volume 136, Issue 3
Abstract
A stated preference (SP) approach is explored for valuation of travel time displayed as traffic information on a variable message sign (VMS) board. Two types of traffic information (called as TI-I and TI-II) are investigated and the valuation is carried out separately for private car and taxi users. Instantaneous travel time is considered as traffic information in TI-I, while instantaneous travel time along with its variation level is considered as traffic information in TI-II. The SP (choice based) data are analyzed by multinomial logit and random parameter logit (RPL) models. In RPL models, the random parameters are assumed to follow constrained triangular distribution, where mean equals its spread. The decomposition of preference heterogeneity around the mean of random parameter is also investigated in RPL models. A variation is observed in the values of travel time under TI-I and TI-II, highlighting the role of the content of VMS based travel-time information. Both travel time as traffic information and a lower variation level associated with travel time as traffic information are perceived as benefits by trip makers. The perceived benefits likely to be derived by providing travel-time information are found to be distinctly different for private car and taxi users. The study also highlights the role of modeling technique and model specification in the valuation of travel time.
Get full access to this article
View all available purchase options and get full access to this article.
Acknowledgments
The writers are thankful to John Rose (Institute of Transport and Logistics Studies, University of Sydney, Australia) for providing various quality suggestions and kind support during the work. The writers are also thankful to the anonymous reviewers for providing valuable review comments.
References
Adamowicz, W., Louviere, J., and Williams, M. (1994). “Combining stated and revealed preference methods for valuing environmental amenities.” J. Envir. Econom. Manage. 26, 271–292.
Adler, J. L., and Blue, V. J. (1998). “Toward the design of intelligent traveler information systems.” Transp. Res., Part C: Emerg. Technol., 6, 157–172.
Algers, S., Bergström, P., Dahlberg, M., and Dillen, J. L. (1998). Mixed logit estimation of the value of travel time, Department of Economics, Uppsala Univ., Uppsala, Sweden.
Amador, F. J., González, R. M., and Ortúzar, J. d. D. (2005). “Preference heterogeneity and willingness-to-pay for travel time savings.” Transportation, 32(6), 627–647.
Ben-Akiva, M., de Palma, A., and Kaysi, I. (1991). “Dynamic network models and driver information system.” Transp. Res., Part A, 25(5), 251–266.
Ben-Akiva, M., and Lerman, S. R. (1985). Discrete choice analysis: Theory and applications to travel demand, MIT Press, Cambridge.
Benson, B. G. (1996). “Motorist attributes about content of variable message signs.” Transportation Research Record 1550, Transportation Research Board, Washington, D.C., 48–57.
Bonsall, P. W., and Merrall, A. C. (1996). “Analysing and modelling influence of roadside variable message displays on drivers’ route choice.” Proc., 7th World Conf. on Transport Res., D. A. Hensher, J. King, and T. H. Oum, eds., Vol. 1, Elsevier, Oxford, 11–25.
Brownstone, D., and Train, K. (1999). “Forecasting new product penetration with flexible substitution patterns.” J. Econometr., 89(1–2), 109–129.
Carlsson, F. (2003). “The demand for intercity public transport: The case of business passengers.” Appl. Econom., 35, 41–50.
Catchpole, J., Hancock, A., and Cairney, P. (1995). “Driver comprehension of formats for presenting traffic information on dynamic signs.” Research Rep. No. ARR 269, ARRB Transport Research, Vermont South, Victory, Australia.
Chatterjee, K., Hounsell, N. B., Firmin, P. E., and Bonsall, P. W. (2002). “Driver response to variable message sign information in London.” Transp. Res., Part C: Emerg. Technol., 10, 149–169.
Cherchi, E., and Ortuzar, J. d. D. (2003). “Alternative specific variables in non-linear utilities: Influence of correlation, homoscedasticity and taste variations.” Proc., 10th Int. Conf. on Travel Behavior Research (IATBR), Lucerne, Switzerland.
Cirillo, C., and Axhausen, K. W. (2006). “Evidence on the distribution of values of travel time savings from a six-week diary.” Transp. Res. Part A: Policy and Practice 40(5), 444–457.
Greene, W. H., Hensher, D. A., and Rose, J. (2006). “Accounting for heterogeneity in the variance of unobserved effects in mixed logit models.” Transp. Res., Part B: Methodol., 40(1), 75–92.
Hato, E., Taniguchi, M., and Sugie, Y. (1996). “Influence of traffic information on drivers’ route choice.” Proc., 7th World Conf., D. A. Hensher, J. King, and T. H. Oum, eds., Vol. 1, Elsevier, Oxford, 27–40.
Hensher, D. A. (1994). “Stated preference analysis of travel choices: The state of practice.” Transportation, 21(2), 107–133.
Hensher, D. A. (2001a). “The sensitivity of the valuation of travel time savings to the specification of unobserved effects.” Transp. Res. Part E, 37E, 129–142.
Hensher, D. A. (2001b). “The valuation of commuter travel time savings for car drivers: Evaluating alternative model specifications.” Transportation, 28(2), 101–118.
Hensher, D. A. (2001c). “Measurement of valuation of travel time savings.” J. Transp. Econ. Policy, 35(I), 71–98.
Hensher, D. A. (2006). “Reducing sign violation for VTTS distributions through recognition of an individual’s attribute processing strategy.” Working paper ITLS-WP-06-13, Institute of Transport and Logistics Studies, The Univ. of Sydney, Sydney, Australia.
Hensher, D. A., and Greene, W. H. (2003). “The mixed logit model: The state of practice.” Transportation, 30(2), 133–176.
Hensher, D. A., Rose, J. M., and Greene, W. H. (2005). Applied choice analysis: A primer, Cambridge University Press, New York.
Hensher, D. A., and Sullivan, C. (2003). “Willingness to pay for road curviness and road type.” Transp. Res. D, 8, 139–155.
Holguı́n-Veras, J (2002). “Revealed preference analysis of commercial vehicle choice process.” J. Transp. Eng., 128(4), 336–346.
Jara-Diaz, S. R. (1998). “Time and income in travel choice: Towards a microeconomic activity based theoretical framework.” Theoretical foundations of travel choice modeling, T. Garling, T. Laitila, and K. Westin, eds., Elsevier Science, New York, 51–73.
Jara-Diaz, S. R. (2000). “Allocation and valuation of travel time savings.” Transport modeling: Handbooks in transport, D. A. Hensher and K. Button, eds., Pergamon, Oxford, Chap. 19.
Jara-Diaz, S. R., and Guevara, C. A. (2003). “Behind the subjective value of travel time savings—The perception of work, leisure and travel from a joint mode choice activity model.” J. Transp. Econ. Policy, 37, 29–46.
Lai, K. H., and Wong, W. G. S. P. (2000). “SP approach toward driver comprehension of message formats on VMS.” J. Transp. Eng., 126(3), 221–227.
Lomax, T., Schrank, D., Turner, S., and Margiotta, R. (2003). Selecting travel reliability measures, Texas Transportation Institute and Cambridge Systematics, Inc., College Station, Tex. and Cambridge, Mass.
Louviere, J. J., Hensher, D. A., and Swait, J. D. (2000). Stated choice methods: Analysis and applications, Cambridge University Press, New York.
Maitra, B. (2006). “Modeling generalized cost of travel and studying the sensitivity of its components using stated preference and revealed preference data.” Project Completion Rep. No. SR/FTP/ET-040/01, Dept. of Civil Engineering, IIT Kharagpur, Kharagpur, India.
McFadden, D. (1974). “Conditional logit analysis of qualitative choice behavior.” Frontiers in econometrics, P. Zarembka, ed., Academic, New York, 105–142.
Mumbai Metro Planning Group. (1997). Mumbai metro study: Travel demand forecasting model, Mumbai, Paper No. 4.
Peeta, S., and Ramos, J. L., Jr. (2006). “Driver response to variable message signs-based traffic information.” IEEE Trans. Intell. Transp. Syst., 153(1), 2–10.
Phanikumar, C. V., and Maitra, B. (2007). “Willingness-to-pay and preference heterogeneity for rural bus attributes.” J. Transp. Eng., 133(1), 62–69.
Revelt, D., and Train, K. (1998). “Mixed logit with repeated choices: Households’ choices of appliance efficiency level.” Rev. Econ. Stat., 80, 647–657.
Ruud, P. (1996). “Approximation and simulation of the multinomial probit model: An analysis of covariance matrix estimation.” Working paper, Department of Economics, Univ. of California, Berkeley, Calif.
Sillano, M., and Ortuzar, J. d. D. (2005). “Willingness-to-pay estimation from mixed logit models: Some new evidence.” Environment and Planning A, 37(3), 525–550.
Train, K. (2001). “A comparison of hierarchical Bayes and maximum simulated likelihood for mixed logit.” Working paper, Department of Economics, University of California, Berkeley, Calif.
Train, K. (2003). Discrete choice methods with simulation, Cambridge University Press, Cambridge.
User’s guide for SPSS 7.5. (1997). SPSS, Inc., Chicago.
Wardman, M., Bonsall, P. W., and Shires, J. D. (1997). “Driver response to variable message signs: A stated preference investigation.” Transp. Res., Part C: Emerg. Technol., 5(6), 389–405.
Information & Authors
Information
Published In
Journal of Urban Planning and Development
Volume 136 • Issue 3 • September 2010
Pages: 214 - 224
Copyright
© 2010 ASCE.
History
Received: Aug 31, 2008
Accepted: Nov 3, 2009
Published online: Nov 6, 2009
Published in print: Sep 2010
Authors
Metrics & Citations
Metrics
Citations
Download citation
If you have the appropriate software installed, you can download article citation data to the citation manager of your choice. Simply select your manager software from the list below and click Download.