Using prospect theory to investigate the low marginal value of travel time for small time changes

Katrine Hjorth and Mogens Fosgerau

Transportation Research Part B: Methodological, 2012, vol. 46, issue 8, 917-932

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.

Keywords: Value of travel time; Stated preference data; Prospect theory; Small time savings (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (13)

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DOI: 10.1016/j.trb.2012.04.001

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