How Much Will I Pay for Freeway Real-Time Traffic Information?

Rong-Chang Jou . and Ke-Hong Chen
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Rong-Chang Jou .: Department of Civil Engineering, College of Science and Technology, National Chi Nan University, Puli, Nantou 545, Taiwan
Ke-Hong Chen: Department of Civil Engineering, College of Science and Technology, National Chi Nan University, Puli, Nantou 545, Taiwan

Sustainability, 2015, vol. 7, issue 10, 1-12

Abstract: Although there is research focused on real-time traffic information, in terms of types of information, timing of provision and drivers’ acceptance, not much is related to quantifying real-time traffic information and its perceived value, i.e ., amount of information and willingness to pay (WTP) for that information. In this study, freeway drivers’ preferred types of real-time traffic information and their willingness to pay for them are investigated. Due to traffic information having the property of non-market goods, a contingent valuation method is applied. A computer-aided survey was conducted in rest areas along freeways to obtain the samples needed. A Spike model is used to overcome the serious biases that would otherwise be caused by numerous zero WTPs in samples when logit and probit models are used. Finally, freeway drivers’ WTP for different types of real-time traffic information can be obtained from the estimation results. The results may be of importance in pricing different types of traffic information more realistically in the future.

Keywords: customized real-time traffic information; pricing; Spike model; contingent valuation method (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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