Modelling Complex Activity‐Travel Scheduling Decisions: Procedure for the Simultaneous Estimation of Activity Generation and Duration Functions

Abstract

Activity generation is a key factor in individual's choices of trip frequency and trip purpose. This paper describes the results of an experiment conducted to estimate functions of several temporal factors on individuals' propensity to schedule a given activity on a given day. The theory on which the experimental design is based states that the probability of scheduling an activity is a complex and continuous function of how long ago the activity was lastly performed, the duration constraints for the activity and the amount of available time in the activity schedule of the day considered. Aurora, an existing model of activity scheduling, assumes S‐shaped utility functions for the history as well as the duration functions, whereas most time‐use studies assume monotonically decreasing marginal utilities. The stated‐choice experiment involves a range of flexible activities and a large sample of individuals to measure the utility effects of a set of carefully chosen levels for the factors and tests these specific assumptions. The results suggest that the amount of discretionary time on a day has no significant impact on the scheduling decisions provided that enough time is available for the activity. The effects of other factors are as expected and show diminishing marginal utilities. We find mixed evidence for an initial phase of increasing marginal returns as assumed in an S‐shaped function.     

Income-contingent user preferences in policy evaluation: application and discussion based on multi-agent transport simulations

Standard economic policy evaluation allows the realization of projects if the aggregated economic benefit outweighs their costs. The use of one single aggregated welfare measure for evaluating and ranking projects has often been criticized for many reasons. A major issue is that differentiated effects on individuals or subgroups of the population are not taken into consideration. This leads to the need for transport planning tools that provide additional information for politicians and decision makers. The microscopic multi-agent simulation approach presented in this paper is capable of helping to design better solutions in such situations. In particular, it is shown that the inclusion of individual income in utility calculations allows a better understanding of problems linked to public acceptance. First, individual income-contingent utility functions are estimated based on survey data in order to describe human mobility behavior. Subsequently, using the MATSim framework, the implementation is tested in a test scenario. Furthermore, and going beyond Franklin (2006), it is shown that the approach works in a large-scale real world example. Based on a hypothetical speed increase of public transit, effects on the welfare distribution of the population are discussed. It is shown that the identification of winners and losers seems to be quite robust. However, results indicate that a conversion or aggregation of individual utility changes for welfare analysis is highly dependent on the functional form of the utility functions as well as on the choice of the aggregation procedure.     

A State-of-the-Art Review: Developments in Utility Theory,Prospect Theory and Regret Theory to Investigate Travellers' Behaviour in Situations Involving Travel Time Uncertainty

Abstract

Despite the wide use of utility theory to model travellers' behaviour, the interest in non-expected utility theories has increased due to their potential to capture more realistic behaviour. A main question raised is whether travellers are better described as utility maximizers or should be qualified differently.

This paper presents a literature review on the use of expected utility theory (EUT), prospect theory (PT) and regret theory (RT) to model travellers' behaviour. Gaps in the literature are identified and a discussion about advantages and disadvantages of each theory is presented. A case study illustrates the differences between the theories.

Under certain conditions, PT and RT restrict themselves to EUT. Their added value, however, is the possibility of capturing loss aversion, risk aversion and risk-seeking (PT) and regret aversion (RT). On the practical level, the use of EUT is well established, while contributions of PT and RT are marginal. On the theoretical level, however, RT seems to be (marginally) more suitable to model travellers' behaviour, while EUT and PT are equally suitable. This suggests that the large use of EUT is highly influenced by its very tractable framework. We do not claim the superiority of any theory, but propose to compare them through a systematic review.     

Classifying Ports for Efficiency Benchmarking: A Review and a Frontier-based Clustering Approach

Abstract

Port efficiency and port clustering are two aspects that have received different degrees of attention in the existing literature. While the actual estimation of port efficiency has been extensively studied, the existing literature has paid little attention to developing robust methodologies for port classification. In this paper, we review the literature on classification methods for port efficiency, and present an approach that combines stochastic frontier analysis, clustering and self-organized maps (SOM). Cluster methodologies that build on the estimated cost function parameters could group ports into performance metrics’ categories. This helps when setting improvement targets for ports as a function of their specific cluster. The methodology is applied to a database of Spanish port authorities. The dendrogram features three clusters and five outlier Spanish Port Authorities. SOM are employed to track the temporal evolution of Spanish Port Authorities that are of special interest for some reasons (i.e. outliers). Results show that use of a combination of cost frontier and cluster methods to define robust port typology and SOMs, jointly or in isolation, offers useful information to the decision-makers.     

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.     

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.     

Transportation of dangerous goods by road: the Brazilian case for selection of carriers based on a risk management methodology

Abstract

This article applies a methodology for selecting carriers for the transportation of dangerous goods by road, with a special focus on risk management aspects. The methodology makes use of Stated Preference techniques and verifies the most critical risk-related variables influencing decision-making from the shippers' point of view. It embraces the planning and execution stages, an evaluation of the contracted company and a feedback process. The methodology was effectively applied to the case of liquid fuel shippers in the Brazilian middle-west region where it proved possible to identify which dangerous goods road transport company to contract in accordance with the risk management factors selected by the decision makers.     

The federal republic of Germany: the federal ministry of transport

The continued liberalization of the airline market in the European Community offers the prospect of competition in terms of price, frequency of service and many other attributes. Understanding these factors that influence passenger demand and incorporating them into a demand function poses a substantial theoretical and empirical challenge. A basis for estimating demand functions is the logit model. This paper examines the value of a logit share model in explaining how the share of airlines between airports varies as a function of measured and unmeasured attributes. It shows how demand functions are necessary for understanding a competitive market and evaluates the progress to date in identifying accurate coefficients of the logit function.     

Rural highway route corridor selection

The selection of a rural highway corridor between designated termini is approached as the simultaneous selection of line and grade of a particular alignment in the corridor. The selection is facilitated by the successive application of linear programming and shortest path techniques. A model is presented in which the inputs are terrain elevations, design constraints on overall grade, terminal grades and elevations, and restricted areas of passage. The output consists of a user‐specified number of alternative corridors, selected on the basis of minimum sum of the deviations of their representative profiles from the original ground. The model is applicable to situations where route selection is dominated by construction considerations. A hypothetical example and an actual application demonstrate the utility of the methodology.     

Capacity-constrained traffic forecasting model

Projecting future traffic is an important stage in any traffic and transportation planning study. Accurate traffic forecasting is vital for transportation planning, highway safety evaluation, traffic operations analysis, and geometric and pavement design among others. In view of its importance, this paper introduces a regression-based traffic forecasting methodology for a one dimensional capacity-constrained highway. Five different prediction functions are tested; the best was selected according to the accuracy of projections against historical traffic data. The three-parameter logistic function produced more accurate projections compared to other functions tested when highway capacity constraints were taken into consideration. The R ² values at various test locations ranged from 88% to 98%, indicating good prediction capability. Using the Fisher's information matrix approach, the t-statistic test showed all parameters in the logistic function were highly statistically significant. To evaluate reliability of projections, predictive intervals were calculated at a 95% level of confidence. Predictions using the logistic function were also compared to those predicted using the compound growth rate and linear regression methods. The results show that the proposed methodology generates much more reasonable projections than current practices.     

Towards improved port capacity investment decisions under uncertainty: a real options approach

ABSTRACT

Port activity plays an important role in facilitating international trade. Sufficient capacity is indispensable for a port to attract flows to a region and retain them. The capacity decision is the result of a trade-off between investment and waiting costs. Traditional methods to value expansion projects do not deal adequately with managerial flexibility in the face of uncertainty from different sources in the complex port environment. In this paper, real options (RO) models are identified as an alternative method to making project valuations and investment decisions, as they attribute the correct value to managerial flexibility under uncertainty. In order to be able to build and use such RO models for port capacity investment decisions, the sources and implications of uncertainty in the port and the different RO model specifications need to be understood. To this end, both the literature about uncertainty in the port context and the literature about real options models are reviewed in order to provide researchers who want to build their own decision-making models, with the necessary knowledge of both fields. The review makes clear that the complex interactions in and competition between the logistics chains and their actors coming together in ports have significant impacts on port capacity. Uncertainty is also caused by uncertain international trade flows and changes in legislation following new technologies and environmental impacts. An analysis of the components of some general RO models shows how the options of flexible output, investment size and timing are valued by RO models in a setting with demand uncertainty. Moreover, the review presents researchers with insights in how to deal with cooperative and competitive interactions in the chain, time to build, cyclical markets and legislation changes. It also shows how to value the expansion and the phased investment options. The new insights resulting from this review are subsequently combined in a framework that serves as a guideline to build RO models for port capacity investments. Finally, an exemplifying application of the framework is used to build an actual port capacity investment decision model.     

Impact of telecommuting and intelligent transportation systems on residential location choice

The impacts of telecommuting and intelligent transportation systems (ITS) on urban development patterns were investigated in terms of households' residential location choice decisions. A discrete choice modelling approach framework was used. A stated preference (SP) logit analysis was carried out to estimate the parameters of the utility function. An attitude survey of employees of selected public and private sector organizations in the Ottawa-Carleton Region (Canada) yielded the required data for model estimation. In addition to obtaining background information, the survey elicited SP responses by presenting a number of hypothetical residential choice scenarios defined according to the principles of SP experimental design. Results show that telecommuting and ITS measures are highly significant factors in the residential choice model. This leads to the conclusion that these reinforce dispersed residential patterns and encourage moves towards outlying sites. Implications of this conclusion for urban land development planning are noted.     

Port privatization policy and practice

In recent years a significant number of countries have implemented policies aimed at reforming their port industry. In the belief that it will improve efficiency and reduce the heavy financial burden placed upon governments that attempt to support such a capital-intensive industry, privatization has often formed an important strand of such policies. A key claim in favour of privatization is that the transfer of ownership from public to private hands will ultimately lead to an improvement in economic efficiency and, hence, financial and operational performance. This paper investigates the theoretical underpinnings and practical validity of this claim and concludes that privatization is only a partial cure for what ails the world's ports and that, if implemented in isolation, it simply cannot deliver the much-needed panacea for the industry's woes.     

Allocating Revenue Risk in Transport Infrastructure Public Private Partnership Projects: How it Matters

Abstract

Transport infrastructure public private partnership (PPP) projects are very diverse and complex in nature not only because of their mode-specific intricacies but also because of their inherent economic characteristics that relate to the scope of involvement of the private sector in the project, the large sunk costs incurred, and ultimately, the competition to which these projects are exposed. The allocation of revenue risk is of paramount importance for the successful implementation of such projects and a sub-optimal allocation may lead to project structuring that is unnecessarily expensive and vulnerable to failure. At the same time, the revenue risk depends critically on the remuneration model used (user-based versus budget-based) and may, in turn, take the form of demand risk, counterparty risk or combinations of the two. This review explores the issues related to revenue risk allocation for transport infrastructure PPP projects. Overarching principles for the allocation of revenue risk that transcend mode-specificity are identified and compared to case studies generated in the context of the COST Action TU1001. The results show that theory and practice are divergent, leading to sub-optimal structuring and exposing projects to potential failure.     

Using risk analysis to determine the potential range of lifecycle costs for urban transit systems

Intense competition for limited public funding for urban transport projects can often result in proponents of individual schemes presenting minimized costs and maximized benefits to funding bodies to try to ensure that their scheme is chosen above others for funding. This presents public bodies with a problem, especially in an era when they are keen to attract private contributions for transit schemes. Risk modelling techniques can be of great assistance in ascertaining ranges of costs and benefits for individual submissions and deciding upon which projects should receive priority-not only those with greatest cost-benefit indices, but also those whose indices have low levels of associated risk to allay the fears of the traditionally risk averse private sector.     

Sustainability Assessment of Transport Infrastructure Projects: A Review of Existing Tools and Methods

Abstract

Attempts to integrate sustainability in the decision-making process for transport infrastructure projects continue to gain momentum. A number of tools and methodological frameworks are available — such as rating systems, traditional decision-making techniques, checklists, and different evaluation frameworks and models. While these tools are highly valuable, some practical issues remain unsolved. There is also a need for more standardized tools to appraise the sustainability of transport projects. This paper is a presentation of a review on the current assessment tools of sustainability applied to transport infrastructure projects. The preliminary part of the paper is an explanatory and comparative analysis of the tools and methods in terms of their effectiveness to appraise sustainability. The analysis is a critical evaluation of the current state of the art to identify the limitations of existing approaches, point out new areas of research, and propose a sustainability appraisal agenda for the future.     

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.     

Rail Infrastructure: Challenges for Cost–Benefit Analysis and Other ex ante Evaluations

Abstract

Cost–benefit analysis (CBA) plays a major role in the ex ante evaluation of rail projects in many western countries. At first sight carrying out a CBA for rail projects seems straightforward, since cost estimates are almost always available, and the most dominant benefits are generally known, being the travel time saved and the increase in consumer surplus due to induced demand. However, the practice is much more complex: the quality of current estimates for costs and benefits is often poor and several benefits-related aspects are ignored. This article gives an overview of the challenges in improving the quality of CBAs for rail projects.     

Livelihoods,daily mobility and poverty in sub-saharan Africa

Based on research funded by the UK Department for International Development, this paper investigates the utility of a livelihoods approach in identifying the mobility and accessibility needs of the poor. Mobility patterns and livelihoods of stratified samples of households in urban-to-rural corridors originating in the national capital cities of Zimbabwe and Uganda are compared, with emphasis on the poor's position relative to higher income groups. It is found that livelihood work was the most frequent purpose of short-distance travel for all income groups and localities, amounting to 38% of trip purposes in Uganda and 46% in Zimbabwe. On average, Zimbabweans were more mobile making more daily trips over longer distances reflective of greater reliance on motorized transport in the country. Nonetheless, walking dominates modal journeys in both countries. Ugandans display heavier dependence on bicycle and motorcycle transport primarily through taxi hire compared with Zimbabweans' private care and public kombi bus transport. Survey evidence suggests that Uganda's poor and middle-incomed urban and rural residents benefit from more widely available multimodal public transport.     

Assessment of Cross‐Border Spillover Effects of National Transport Infrastructure Plans: An Accessibility Approach

Abstract

Traditional transport infrastructure assessment methodologies rarely include the full range of strategic benefits for the transportation system. One of these benefits is the contribution to cross‐border integration, critical for the European integration process. However, this is a key issue in strategic planning and decision‐making processes, as its inclusion may increase the probability of large‐scale transport infrastructure projects being funded. This paper presents a methodology for the measurement of the contribution of transport infrastructure plans to European integration. The methodology is based on the measurement of the improvement in network efficiency in cross‐border regions of neighbouring countries, via accessibility calculations in a Geographical Information System support. The methodology was tested by applying it to the ambitious road and rail network extensions included in the Spanish Strategic Transport and Infrastructure Plan (PEIT) 2005–2020. The results show significant and important network efficiency improvements of the PEIT outside the Spanish border. For the road mode, while the Spanish average accessibility improvement accounts for 2.6%, average improvements in cross‐border regions of France and Portugal are of 1.8%. And for the rail mode, the corresponding Spanish value is 34.5%, whereas in neighbouring regions it accounts for 20.2%. These results stress the significant importance of this strategic benefit and the consequent need for its inclusion in strategic planning processes. Finally, the paper identifies the potential of the methodology when applied at different administrative levels, such as the local or state levels.