Modelling travellers’ risky choice in a revealed preference context: a comparison of EUT and non-EUT approaches

Recent work on risky choice modelling has sought to address the shortcomings of expected utility theory (EUT) by using non-expected utility theoretic (non-EUT) approaches. However, to date these approaches have been merely tested on stated choice data which is flexible and cheap. In this study, we empirically investigate the feasibility and validity of non-EUT approaches in a revealed preference (RP) context in which travel time distribution is extracted from observed historical travel time data, and subsequently present systematic comparisons between EUT, weighted utility theory, rank-dependent expected utility theory, and prospect theory (PT). The empirical evidence indicates that each non-EUT model has important behavioural insights to offer, moreover, EUT as well as non-EUT models can be applied to the RP context. However, the EUT and non-EUT model fits are generally similar with only PT providing a marginally improved model fit over EUT. The key findings presented in this study reinforce the importance of exploring non-EUT models within a revealed preference context before they can be applied reliably to modelling risky choices in the real world.     

Measuring community reaction to urban transportation impacts using Von Neumann‐Morgenstern utility theory

This paper attempts to measure the impacts of urban transportation system improvements or changes on the community. The community's perceptions of the impacts are represented by its utilities (or disutilities) over various ranges of values of the multiple attributes representing these impacts. The utility technique used in the evaluation is based upon von Neumann‐Morgenstern (vN‐M, 1947) Utility Theory, and is applied using Raiffa's (1970) Fractile Method.

The paper specifically applies the technique to model the perceptions of five subgroups within a community to the impact of a new light rail transit system that is being incorporated in the transportation system of the City of Calgary.

Results of the modeling indicate explicitly how the community changes its perception over ranges of values of the attributes evaluated. Biases of various subgroups within the community over these attributes are also shown. Statistical tests indicate that aggregated utility perceptions can represent the utility perceptions of the individual subgroups quite reasonably.     

On the goods-activities technical relations in the time allocation theory

In areas like household production and travel choice, time assigned to the different activities plays a key role in addition to consumption as the main variables in utility within the consumer behaviour framework. However, a comprehensive conceptual structure to understand the technological relations between goods consumption and the assignment of time to activities is still lacking. In this paper the problem is reviewed and all possible relations between goods and time are re-formulated. Two general functions are defined and proposed to account for all these relations, forming a new taxonomy for the technical constraints. The resulting consumer behaviour model is used to obtain general expressions for both the value of saving time in constrained activities like travel, and the value of leisure.     

Park-and-ride lot choice model using random utility maximization and random regret minimization

This research aims to understand the park-and-ride (PNR) lot choice behaviour of users i.e., why PNR user choose one PNR lot versus another. Multinomial logit models are developed, the first based on the random utility maximization (RUM) concept where users are assumed to choose alternatives that have maximum utility, and the second based on the random regret minimization (RRM) concept where users are assumed to make decisions such that they minimize the regret in comparison to other foregone alternatives. A PNR trip is completed in two networks, the auto network and the transit network. The travel time of users for both the auto network and the transit network are used to create variables in the model. For the auto network, travel time is obtained using information from the strategic transport network using EMME/4 software, whereas travel time for the transit network is calculated using Google’s general transit feed specification data using a backward time-dependent shortest path algorithm. The involvement of two different networks in a PNR trip causes a trade-off relation within the PNR lot choice mechanism, and it is anticipated that an RRM model that captures this compromise effect may outperform typical RUM models. We use two forms of RRM models; the classical RRM and µRRM. Our results not only confirm a decade-old understanding that the RRM model may be an alternative concept to model transport choices, but also strengthen this understanding by exploring differences between two models in terms of model fit and out-of-sample predictive abilities. Further, our work is one of the few that estimates an RRM model on revealed preference data.

     

A continuous network design model in stochastic user equilibrium based on sensitivity analysis

The continuous network design problem (CNDP) is known to be difficult to solve due to the intrinsic properties of non‐convexity and nonlinearity. Such kinds of CNDP can be formulated as a bi‐level programme, in which the upper level represents the designer's decisions and the lower level the travellers' responses. Formulations of this kind can be classified as either Stackelberg approaches or Nash ones according to the relationship between the upper level and the lower level parts. This paper formulates the CNDP for road expansion based on Stackelberg game where leader and follower exist, and allows for variety of travellers' behaviour in choosing their routes. In order to solve the problem by the Stackelberg approach, we need a relation between link flows and design parameters. For this purpose, we use a logit route choice model, which provides this in an explicit closed‐form function. This model is applied to two example road networks to test and briefly compare the results between the Stackelberg and Nash approaches to explore the differences between them.     

A multi‐class mean‐excess traffic equilibrium model with elastic demand

Recent empirical studies have revealed that travel time variability plays an important role in travelers' route choice decisions. To simultaneously account for both reliability and unreliability aspects of travel time variability, the concept of mean‐excess travel time (METT) was recently proposed as a new risk‐averse route choice criterion. In this paper, we extend the mean‐excess traffic equilibrium model to include heterogeneous risk‐aversion attitudes and elastic demand. Specifically, this model explicitly considers (1) multiple user classes with different risk‐aversions toward travel time variability when making route choice decisions under uncertainty and (2) the elasticity of travel demand as a function of METT when making travel choice decisions under uncertainty. This model is thus capable of modeling travelers' heterogeneous risk‐averse behaviors with both travel choice and route choice considerations. The proposed model is formulated as a variational inequality problem and solved via a route‐based algorithm using the modified alternating direction method. Numerical analyses are also provided to illustrate the features of the proposed model and the applicability of the solution algorithm. Copyright © 2012 John Wiley & Sons, Ltd.     

Risk aversion,regret aversion and travel choice inertia: an experimental study

This paper presents the results of an experimental study into the role of risk aversion and regret aversion as codeterminants of travel choice inertia. Theoretical results published by Chorus and Dellaert are tested empirically. More specifically, the expectation is tested that when (1) travelers are risk averse, (2) the quality of travel choices is uncertain, and (3) the quality is partially revealed upon usage, travel choice inertia emerges as a learning-based lock-in effect. In addition, this paper studies the role of regret aversion as a possible trigger of travel choice inertia. Analyses are based on data collected in an experiment, where the reward that participants obtain is a function of the outcome of choices they make. Empirical results suggest that the learning-based lock-in effect indeed plays a role in the context of our data. The evidence for the hypothesis that regret aversion triggers inertia is mixed at best.     

Segmentation of paratransit users based on service quality and travel behaviour in Bandung,Indonesia

Using a data-set collected among paratransit users in Bandung, Indonesia, this paper explores the impacts of paratransit users' negative experiences and dissatisfactions with their paratransit usage pattern. Segmentation and ordered probit analyses are used to examine the impacts of users' opinions on service quality on their trip-making behaviour. The results indicate that users are divided into six segments – namely, the unlucky, the young user, the experienced, the adapter, the infrequent user and the captive. The results further indicate that paratransit users, especially women, perceive negative experiences related to on-time performance (departure and arrival time) and security issues related to vehicles. Despite these dissatisfactions and negative experiences, they are still likely to use paratransit as part of their daily life. Two paratransit market segments (the adapter and the captive) are also likely to result in more trips using paratransit. The study offers several strategies and recommendations that can improve the current paratransit system so that it can better serve local needs.     

Innovative systems for the transportation disadvantaged: Toward more efficient and operationally usable planning tools

When considering innovative forms of public transport for specific groups, such as demand responsive services, the challenge is to find a good balance between operational efficiency and 'user friendliness' of the scheduling algorithm even when specialized skills are not available. Regret insertion-based processes have shown their effectiveness in addressing this specific concern. We introduce a new class of hybrid regret measures to understand better why the behaviour of this kind of heuristic is superior to that of other insertion rules. Our analyses show the importance of keeping a good balance between short- and long-term strategies during the solution process. We also use this methodology to investigate the relationship between the number of vehicles needed and total distance covered - the key point of any cost analysis striving for greater efficiency. Against expectations, in most cases decreasing fleet size leads to savings in vehicle mileage, since the heuristic solution is still far from optimality.     

A microeconomic interpretation for the system optimal traffic assignment problem with nonadditive path cost

Using a Bergson–Samuelson welfare function, we outline a microeconomic interpretation of the effects of the non-linearity in the time/cost relationship for travellers in a congested transport network. It is demonstrated that a marginal cost traffic flow assignment following Wardrop's second principle, although it minimizes the total cost of a transport network, may reduce social welfare compared to the market equilibrium assignment based on Wardrop's first principle. A welfare-maximizing assignment model is presented and used to show that if the travellers' utility functions are linear, the assignment that maximizes social welfare will be the same as the assignment that minimizes total network cost, but if users' utility functions are non-linear (reflecting the traditional non-satiation and diminishing marginal utility axioms), the two assignments will be different. It is further shown that the effects of this non-linearity are such that a welfare-maximizing assignment will meet with less user resistance than a minimum total network cost assignment.     

Discussing the “positive utilities” of autonomous vehicles: will travellers really use their time productively?

ABSTRACT

Autonomous vehicles (AVs) are expected to reshape travel behaviour and demand in part by enabling productive uses of travel time—a primary component of the “positive utility of travel” concept—thus reducing subjective values of travel time savings (VOT). Many studies from industry and academia have assumed significant increases in travel time use and reductions in VOT for AVs. In this position paper, I argue that AVs’ VOT impacts may be more modest than anticipated and derive from a different source. Vehicle designs and operations may limit activity engagement during travel, with AV users feeling more like car passengers than train riders. Furthermore, shared AVs may attenuate travel time use benefits, and productivity gains could be limited to long-distance trips. Although AV riders will likely have greater activity participation during travel, many in-vehicle activities today may be more about coping with commuting burdens than productively using travel time. Instead, VOT reductions may be more likely to arise from a different “positive utility”—subjective well-being improvements through reduced stresses of driving or the ability to relax and mentally transition. Given high uncertainty, further empirical research on the experiential, time use, and VOT impacts of AVs is needed.     

Stated choices and benefit estimates in the context of traffic calming schemes: Utility maximization,regret minimization,or both?

This paper proposes a discrete mixture model which assigns individuals, up to a probability, to either a class of random utility (RU) maximizers or a class of random regret (RR) minimizers, on the basis of their sequence of observed choices. Our proposed model advances the state of the art of RU–RR mixture models by (i) adding and simultaneously estimating a membership model which predicts the probability of belonging to a RU or RR class; (ii) adding a layer of random taste heterogeneity within each behavioural class; and (iii) deriving a welfare measure associated with the RU–RR mixture model and consistent with referendum-voting, which is the adequate mechanism of provision for such local public goods. The context of our empirical application is a stated choice experiment concerning traffic calming schemes. We find that the random parameter RU–RR mixture model not only outperforms its fixed coefficient counterpart in terms of fit—as expected—but also in terms of plausibility of membership determinants of behavioural class. In line with psychological theories of regret, we find that, compared to respondents who are familiar with the choice context (i.e. the traffic calming scheme), unfamiliar respondents are more likely to be regret minimizers than utility maximizers.     

Understanding transport mode choice for commuting: the role of affect

This study examines the relationship between positive and negative user valence and transport mode choice behaviour. We integrate latent attitudes ‘affect’ and ‘salience’ into transport mode choice models using the framework of integrated choice and latent variable modelling and simultaneous maximum likelihood estimation methods. The results are consistent with findings in similar travel behaviour and behavioural economics literature. The study extends the findings of previous research and has demonstrated that user sentiments about public transport mode and salient public transport experiences have a significant impact on travel mode choice behaviour. It was found that private motorised users are more sensitive to overcrowding and anti-social behaviours on PT than active and PT travellers. Key attitudinal indicators influencing individual transport choice behaviour are established to guide public policy. The key indicators of Affect and Salience must be analysed and addressed through public policy to enhance PT user experience and develop services and facilities to increase the utility of PT in-vehicle travel time.     

Line haul interstation spacing for low cost feeder modes

The choice behaviour of low cost travel (LCT) modes is very sensitive to travel distance. A line haul system designed on the basis of current planning practice of locating widely spaced stations to cater auto and bus feeder modes with the primary objective of gaining travel speed is hostile to non‐motorized and low cost feeder modes. With the revival of interest in promoting the use of walk'n ride and bike'n ride modes, there is a need to develop an appropriate tool to examine the effect of their specific characteristics in establishing the number and location of stations.

A generic normative behavioural hybrid model for locating the cost minimizing number and location of stations is developed for an LCT‐fed line haul system. The model considers the system with many to many two dimensional line haul demand density function in which the density varies in both x‐ and y‐directions. The feeder mode choice behaviour is incorporated in the model by integrating probability‐access/egress distance function with the objective function. Explicit functional relationships among the parameters of these feeder modes such as modal share as a function of access/egress distance with the parameters of line haul systems are developed. Dynamic programming is used to minimize the system cost. The generic model is shown to collapse into several simplified models capable of yielding approximate solutions for several well known special cases. It has been shown that location of stations is sensitive to the through load on board as well as users’ cost that defines the choice behaviour at large. Numerical examples are presented to demonstrate the applicability of the model.     

Efficient solution algorithm for finding spatially dependent reliable shortest path in road networks

Travel times are generally stochastic and spatially correlated in congested road networks. However, very few existing route guidance systems (RGS) can provide reliable guidance services to aid travellers planning their trips with taking account explicitly travel time reliability constraint. This study aims to develop such a RGS with particular consideration of travellers' concern on travel time reliability in congested road networks with uncertainty. In this study, the spatially dependent reliable shortest path problem (SD‐RSPP) is formulated as a multi‐criteria shortest path‐finding problem in road networks with correlated link travel times. Three effective dominance conditions are established for links with different levels of travel time correlations. An efficient algorithm is proposed to solve SD‐RSPP by adaptively using three established dominance conditions. The complexities of road networks in reality are also explicitly considered. To demonstrate the applicability of proposed algorithm, a comprehensive case study is carried out in Hong Kong. The results of case study show that the proposed solution algorithm is robust to take account of travellers' multiple routing criteria. Computational results demonstrate that the proposed solution algorithm can determine the reliable shortest path on real‐time basis for large‐scale road networks. Copyright © 2016 John Wiley & Sons, Ltd.     

Effects of incorporating latent and attitudinal information in mode choice models

Abstract

Hybrid choice modelling approaches allow latent variables in mode choice utility functions to be addressed. However, defining attitude and behavior as latent variables is influenced by the researcher's assumptions. Therefore, it is better to capture the effects of latent behavioral and attitudinal factors as latent variables than defining behaviors and attitudes per se. This article uses a hybrid choice model for capturing such latent effects, which will herein be referred to as modal captivity effects in commuting mode choice. Latent modal captivity refers to the unobserved and apparently unexplained attraction towards a specific mode of transportation that is resulting from latent attitude and behavior of passengers in addition to the urban transportation system. In empirical models, the latent modal captivity variables are explained as functions of different observed variables. Empirical models show significant improvement in fitting observed data as well as improved understanding of travel behavior.