Indifference bands for boundedly rational route switching

Xuan Di (), Henry X. Liu, Shanjiang Zhu and David Levinson
Additional contact information
Xuan Di: University of Michigan
Henry X. Liu: University of Michigan
Shanjiang Zhu: George Mason University

Transportation, 2017, vol. 44, issue 5, No 17, 1169-1194

Abstract: Abstract The replacement I-35W bridge in Minneapolis saw less traffic than the original bridge though it provided substantial travel time saving for many travelers. This observation cannot be explained by the classical route choice assumption that travelers always take the shortest path. Accordingly, a boundedly rational route switching model is proposed assuming that travelers will not switch to the new bridge unless travel time saving goes beyond a threshold or “indifference band”. Indifference bands are assumed to follow lognormal distribution and are estimated in two specifications: the first one assumes every driver’s indifference band is drawn from a population indifference band and the second one assumes that the mean of drivers’ indifference bands is a function of their own characteristics. Route choices of 78 subjects from a GPS travel behavior study were analyzed before and after the addition of the new I-35W bridge to estimate parameters. This study provides insights into empirical analysis of bounded rationality and sheds light on indifference band estimation using empirical data.

Keywords: Bounded rationality; Indifference band; Empirical estimation; GPS study; Route choice (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
http://link.springer.com/10.1007/s11116-016-9699-1 Abstract (text/html)
Access to full text is restricted to subscribers.

Related works:
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: https://EconPapers.repec.org/RePEc:kap:transp:v:44:y:2017:i:5:d:10.1007_s11116-016-9699-1

Ordering information: This journal article can be ordered from
http://www.springer. ... ce/journal/11116/PS2

DOI: 10.1007/s11116-016-9699-1

Access Statistics for this article

Transportation is currently edited by Kay W. Axhausen

More articles in Transportation from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().