Economics at your fingertips  

The valuation of travel time reliability: does congestion matter?

Yu Xiao, Nicolas Coulombel and André de Palma ()

Transportation Research Part B: Methodological, 2017, vol. 97, issue C, 113-141

Abstract: This paper addresses the valuation of travel time reliability in the presence of endogenous congestion and the role of scheduling preferences. The bottleneck model of road congestion is amended by considering stochastic travel times. We thereby take into account the influence of travel time variability on the congestion profile. The cost of travel time variability is the same with exogenous or endogenous congestion for two classes of preferences: linear marginal utility of time (MUT) at work and constant-exponential MUT. Therefore, cost-benefit analyses of travel time reliability improvements yield consistent results even if departure time adjustments are not accounted for. For α−β−γ preferences, departure time adjustments decrease congestion, which strongly mitigates the cost of travel time variability. Cost-benefit analyses need in this case to explicitly consider the departure time choice, to avoid being biased for the rush hour period (when congestion is strong). A method is proposed to correct this bias when necessary.

Keywords: Reliability; Congestion; Scheduling preferences; Bottleneck; Value of travel time variability (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3) Track citations by RSS feed

Downloads: (external link)
Full text for ScienceDirect subscribers only

Related works:
Working Paper: The valuation of travel time reliability: does congestion matter? (2017)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Ordering information: This journal article can be ordered from
https://shop.elsevie ... _01_ooc_1&version=01

Access Statistics for this article

Transportation Research Part B: Methodological is currently edited by Fred Mannering

More articles in Transportation Research Part B: Methodological from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

Page updated 2019-07-15
Handle: RePEc:eee:transb:v:97:y:2017:i:c:p:113-141