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.     

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.     

Embedding risk attitude and decision weights in non-linear logit to accommodate time variability in the value of expected travel time savings

In recent years we have seen important extensions of logit models in behavioural research such as incorporation of preference and scale heterogeneity, attribute processing heuristics, and estimation of willingness to pay (WTP) in WTP space. With rare exception, however, a non-linear treatment of the parameter set to allow for behavioural reality, such as embedded risk attitude and perceptual conditioning of occurrence probabilities attached to specific attributes, is absent. This is especially relevant to the recent focus in travel behaviour research on identifying the willingness to pay for reduced travel time variability, which is the source of estimates of the value of trip reliability that has been shown to take on an increasingly important role in project appraisal. This paper incorporates, in a generalised non-linear (in parameters) logit model, alternative functional forms for perceptual conditioning (known as probability weighting) and risk attitude in the utility function to account for travel time variability, and then derives an empirical estimate of the willingness to pay for trip time variability-embedded travel time savings as an alternative to separate estimates of time savings and trip time reliability. We illustrate the richness of the approach using a stated choice data set for commuter choice between unlabelled attribute packages. Statistically significant risk attitude parameters and parameters underlying decision weights are estimated for multinomial logit and mixed multinomial logit models, along with values of expected travel time savings.     

Accommodating risk in the valuation of expected travel time savings

Valuation of travel time savings is a critical measure in transport infrastructure appraisal, traffic modelling and network performance. It has been recognised for some time that the travel times associated with repeated trips are subject to variation, and hence there is risk embedded in the treatment of expected travel time. In the context of the expected utility framework, we use a nonlinear probability weighting function to accommodate choice made under risk. Although the empirical findings suggest small differences between the value of expected travel time savings (VETTS) in the presence and absence of risk, the mean estimate does make a noticeable difference to time benefits when applied to real projects. By incorporating nonlinear probability weighting, our model reveals that the probabilities associated with specific travel times that are shown to respondents in the choice experiment are transformed, resulting in overweighting of outcomes with low probabilities and underweighting of outcomes with high probabilities. Copyright © 2011 John Wiley & Sons, Ltd.     

Activity-based disaggregate travel demand model system with activity schedules

We present an integrated activity-based discrete choice model system of an individual’s activity and travel schedule, for forecasting urban passenger travel demand. A prototype demonstrates the system concept using a 1991 Boston travel survey and transportation system level of service data. The model system represents a person’s choice of activities and associated travel as an activity pattern overarching a set of tours. A tour is defined as the travel from home to one or more activity locations and back home again. The activity pattern consists of important decisions that provide overall structure for the day’s activities and travel. In the prototype the activity pattern includes (a) the primary – most important – activity of the day, with one alternative being to remain at home for all the day’s activities; (b) the type of tour for the primary activity, including the number, purpose and sequence of activity stops; and (c) the number and purpose of secondary – additional – tours. Tour models include the choice of time of day, destination and mode of travel, and are conditioned by the choice of activity pattern. The choice of activity pattern is influenced by the expected maximum utility derived from the available tour alternatives.     

Speed limits,speed selection and network equilibrium

This paper investigates the local and global impact of speed limits by considering road users’ non-obedient behavior in speed selection. Given a link-specific speed limit scheme, road users will take into account the subjective travel time cost, the perceived crash risk and the perceived ticket risk as determinant factors for their actual speed choice on each link. Homogeneous travelers’ perceived crash risk is positively related to their driving speed. When travelers are heterogeneous, the perceived crash risk is class-specific: different user classes interact with each other and choose their own optimal speed, resulting in a Nash equilibrium speed pattern. With the speed choices on particular roads, travelers make route choices, resulting in user equilibrium in a general network. An algorithm is proposed to solve the user equilibrium problem with heterogeneous users under link-specific speed limits. The models and algorithms are illustrated with numerical examples.     

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.

     

The value of service reliability

This paper studies the impact of service frequency and reliability on the choice of departure time and the travel cost of transit users. When the user has (α, β, γ) scheduling preferences, we show that the optimal head start decreases with service reliability, as expected. It does not necessarily decrease with service frequency, however. We derive the value of service headway (VoSH) and the value of service reliability (VoSR), which measure the marginal effect on the expected travel cost of a change in the mean and in the standard deviation of headways, respectively. The VoSH and the VoSR complete the value of time and the value of reliability for the economic appraisal of public transit projects by capturing the specific link between headways, waiting times, and congestion. An empirical illustration is provided, which considers two mass transit lines located in the Paris area.     

The effect of travel time variability on route choice decision: a generalized linear mixed model based analysis

The effect of travel time variability (TTV) on route choice behavior is explored in this study. A stated preference survey is conducted to collect behavioral data on Shanghai drivers’ choice between a slow but stable route and a fast but unreliable route. Travel time and TTV are respectively measured by mean and standard deviation of random travel time. The generalized linear mixed model (GLMM) is applied to quantify trade-offs between travel time and TTV. The GLMM based route choice model effectively accounts for correlations among repeated observations from the same respondent, and captures heterogeneity in drivers’ values of TTV. Model estimation results show that, female drivers and drivers with rich driving experience are less likely to choose a route with high TTV; smaller expected travel time of a route increase the probability of its being chosen; all drivers have intrinsic preference for a route with smaller expected travel time, but the degree of preference may vary within the population; TTV on average has negative effects on route choice decision, but a small portion of drivers are risk-prone to choose a fast but unreliable route despite high TTV.     

Costs of travel time uncertainty and benefits of travel time information: Conceptual model and numerical examples

A negative effect of congestion that tends to be overlooked is travel time uncertainty. Travel time uncertainty causes scheduling costs due to early or late arrival. The negative effects of travel time uncertainty can be reduced by providing travellers with travel time information, which improves their estimate of the expected travel time, thereby reducing scheduling costs. In order to assess the negative effects of uncertainty and the benefits of travel time information, this paper proposes a conceptual model of departure time choice under travel time uncertainty and information. The model is based on expected utility theory, and includes the variation in travel time, the quality of travel time information and travellers’ perception of the travel time. The model is illustrated by an application to the case of the A2 motorway between Beesd and Utrecht in the Netherlands.     

Bayesian predictive travel time methodology for advanced traveller information system

Travellers can benefit from the availability of point‐to‐point driving time estimates on a real time basis for making travel decisions such as route choice at strategic locations (e.g. junctions of major routes). This paper reports a predictive travel time methodology that features a Bayesian approach to fusing and updating information for use in advanced traveller information system. The methodology addresses the issue that data captured in real time on travel conditions becomes obsolete and has archival value only unless it is used as an input to a predictive travel time method for updating the information. The need for fusing real time data with other factors that influence travel time is defined and the concept of predictive travel time is discussed. The methodological framework and its components are advanced and an example application is provided for illustrating the fusion of data captured by infrastructure‐based and mobile technology with model‐based predictions in order to produce expected travel times. Copyright © 2010 John Wiley & Sons, Ltd.     

Door-to-door travel times in RP departure time choice models: An approximation method using GPS data

A common way to determine values of travel time and schedule delay is to estimate departure time choice models, using stated preference (SP) or revealed preference (RP) data. The latter are used less frequently, mainly because of the difficulties to collect the data required for the model estimation. One main requirement is knowledge of the (expected) travel times for both chosen and unchosen departure time alternatives. As the availability of such data is limited, most RP-based scheduling models only take into account travel times on trip segments rather than door-to-door travel times, or use very rough measures of door-to-door travel times. We show that ignoring the temporal and spatial variation of travel times, and, in particular, the correlation of travel times across links may lead to biased estimates of the value of time (VOT). To approximate door-to-door travel times for which no complete measurement is possible, we develop a method that relates travel times on links with continuous speed measurements to travel times on links where relatively infrequent GPS-based speed measurements are available. We use geographically weighted regression to estimate the location-specific relation between the speeds on these two types of links, which is then used for travel time prediction at different locations, days, and times of the day. This method is not only useful for the approximation of door-to-door travel times in departure time choice models, but is generally relevant for predicting travel times in situations where continuous speed measurements can be enriched with GPS data.     

Choosing Public Transport—Incorporating Richer Behavioural Elements in Modal Choice Models

The development of behaviourally richer representations of the role of well-established and increasingly important influences on modal choice, such as trip time reliability and accounting for risk attitude and process rules, has moved forward at a fast pace in the context of automobile travel. In the public transport setting, such contributions have, with rare exception, not been considered. In this paper, we discuss and empirically illustrate the merits of advanced modelling developments aimed at improving our understanding of public transport choice, namely the inclusion of reliability in extended expected utility theoretic forms, to recognize risk attitude and perceptual conditioning, the consideration of passenger crowding and its inclusion in linear additive models, and the role of multiple heuristics in representing attribute processing as a way of conditioning modal choice. We illustrate the mechanics of introducing these behaviourally appealing extensions using a modal choice data set collected in Sydney.     

Comparative analysis of three user equilibrium models under stochastic demand

Recent empirical studies on the value of time and reliability reveal that travel time variability plays an important role on travelers' route choice decision process. It can be considered as a risk to travelers making a trip. Therefore, travelers are not only interested in saving their travel time but also in reducing their risk. Typically, risk can be represented by two different aspects: acceptable risk and unacceptable risk. Acceptable risk refers to the reliability aspect of acceptable travel time, which is defined as the average travel time plus the acceptable additional time (or buffer time) needed to ensure more frequent on‐time arrivals, while unacceptable risk refers to the unreliability aspect of unacceptable late arrivals (though infrequent) that have a travel time excessively higher than the acceptable travel time. Most research in the network equilibrium based approach to modeling travel time variability ignores the unreliability aspect of unacceptable late arrivals. This paper examines the effects of both reliability and unreliability aspects in a network equilibrium framework. Specifically, the traditional user equilibrium model, the demand driven travel time reliability‐based user equilibrium model, and the α‐reliable mean‐excess travel time user equilibrium model are considered in the investigation under an uncertain environment due to stochastic travel demand. Numerical results are presented to examine how these models handle risk under travel time variability.     

The Impact of Travel Time Information on Travelers’ Learning under Uncertainty

In this work, laboratory experiment was conducted in order to evaluate the effect of feedback on decision-making under uncertainty, with and without provided information about travel times. We discuss the prediction of travelers’ response to uncertainty in two route–choice situations. In the first situation travelers are faced with a route–choice problem in which travel times are uncertain but some external information about routes’ travel times is provided. The second situation takes place in a more uncertain environment in which external information about travel times is not provided, and the travelers’ only source of information is their own experience. Experimental results are in conflict with the paradigm about traveler information systems: As a consequence of information, the propensity of travelers to minimize expected travel time is not necessarily increased. Providing travelers with static information about expected travel times reveals an increase in the heterogeneity of travelers’ choices and reduces the maximization rate.     

Modelling route choice behaviour in a tolled road network with a time surplus maximisation bi-objective user equilibrium model

In this paper, we propose a novel approach to model route choice behaviour in a tolled road network with a bi-objective approach, assuming that all users have two objectives: (1) minimise travel time; and (2) minimise toll cost. We assume further that users have different preferences in the sense that for any given path with a specific toll, there is a limit on the time that an individual would be willing to spend. Different users can have different preferences represented by this indifference curve between toll and time. Time surplus is defined as the maximum time minus the actual time. Given a set of paths, the one with the highest (or least negative) time surplus will be the preferred path for the individual. This will result in a bi-objective equilibrium solution satisfying the time surplus maximisation bi-objective user equilibrium (TSmaxBUE) condition. That is, for each O–D pair, all individuals are travelling on the path with the highest time surplus value among all the efficient paths between this O–D pair.We show that the TSmaxBUE condition is a proper generalisation of user equilibrium with generalised cost function, and that it is equivalent to bi-objective user equilibrium. We also present a multi-user class version of the TSmaxBUE condition and demonstrate our concepts with illustrative examples.