Estimating the Option Value of managed lanes

Sunghoon Lee and Mark W. Burris

Research in Transportation Economics, 2018, vol. 70, issue C, 28-36

Abstract: The option value of managed lanes (MLs) refers to the value travelers' place on having MLs as a backup option for possible use in the future, even if they are not using the MLs for their current trip. This research used detailed travel data from Katy Freeway MLs and general purpose lanes (GPLs) in Huston to estimate the option value of MLs. Based on these data, this research recommends ML option users to be defined as only those travelers who used MLs at least once a year as opposed to all travelers who could have used the MLs (even those who never used MLs).

Keywords: Contingency value; Managed lanes; Option value (search for similar items in EconPapers)
JEL-codes: G13 R40 R42 (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (1)

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DOI: 10.1016/j.retrec.2018.07.016

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