Towards a practical method to establish comparable values of travel time savings from stated choice experiments with differing design dimensions

Individual’s process the information in stated choice (SC) experiments in many different ways. In order to accommodate decisions rules that are used in processing information, there is good sense in conditioning the parameterisation of stated choice design attributes on these rules. In particular, rules might be invoked to cope with the dimensionality of the SC design. In this paper, we investigate the impact of rules such as attribute aggregation and reference dependency on preference profiles for specific design attributes, as well as the design specification, as we vary the dimensionality of an SC design. The heteroscedastic extreme value logit model is estimated to identify the role of design dimensionality and attribute processing rules, after accounting for scale differences across sixteen pooled data designs The empirical evidence, drawn from a study in Sydney of car commuter route choice, suggests that accounting for the way that stated choice designs are processed, given their dimensionality, does make a statistically significant difference on measures of willingness to pay, as does accounting for scale differences between pooled data designs. This evidence has practical value in guiding the design of SC experiments and in adjusting results from different SC designs when comparing the evidence. We propose a simple adjustment formula to use in adjusting VTTS from different studies so that they are comparable. From a practical policy perspective, the evidence sends a warning about the risk of undervaluing mean VTTS if the attribute processing rules are not accounted for.     

Accident cost saving and highway attributes

Two semi-logarithmic regression models are developed to estimate accident rates and accident costs, respectively, for rural non-interstate highways in the state of Iowa. Data on 21,224 accidents occurring between 1989 and 1991 on 17,767 road segments are used in the analysis. Seven road attributes of these road segments are included as predictor variables. Applying the resulting regression models to a rather typical highway upgrade situation, the present value of the accident cost saving is computed. The sensitivity of the estimated cost saving to values for fatal, personal injury, and property damage only accidents is tested.Because factors other than road characteristics greatly influence accident costs, the models developed in this research explain a limited amount of the variance in these costs among road segments. Results of the analysis indicate that the most important attribute associated with accident costs is average daily traffic per lane, followed by conditions requiring passing restrictions and the sharpness of curves. Varying the values for the three categories of accidents shows that results are far more sensitive to the value of personal injuries than fatalities. The feasibility of using predictive models of accident costs in benefit-cost analyses of highway investments is demonstrated.     

Work and home location: Possible role of social networks

This research explores to what extent people’s work locations are similar to that of those who live around them. Using the Longitudinal Employer-Household Dynamics data set and the 2000 decennial census, we investigate the home and work locations of different census block residents in the Twin Cities (Minneapolis-St. Paul) metropolitan area. Our aim is to investigate if people who share a residence neighborhood also share work locations to a degree beyond what would be explained by distanhe observed patterns is the role neighborhood level and work place social networks play in locating jobs and residences respectively.     

Making use of respondent reported processing information to understand attribute importance: a latent variable scaling approach

In recent years we have seen an explosion of research seeking to understand the role that rules and heuristics might play in improving the predictive capability of discrete choice models, as well as delivering willingness to pay estimates for specific attributes that may (and often do) differ significantly from estimates based on a model specification that assumes all attributes are relevant. This paper adds to that literature in one important way—it explicitly recognises the endogeneity issues raised by typical attribute non-attendance treatments and conditions attribute parameters on underlying unobserved attribute importance ratings. We develop a hybrid model system involving attribute processing and outcome choice models in which latent variables are introduced as explanatory variables in both parts of the model, explaining the answers to attribute processing questions and explaining heterogeneity in marginal sensitivities in the choice model. The resulting empirical model explains how lower latent attribute importance leads to a higher probability of indicating that an attribute was ignored or that it was ranked as less important, as well as increasing the probability of a reduced value for the associated marginal utility coefficient in the choice model. The model does so by treating the answers to information processing questions as dependent rather than explanatory variables, hence avoiding potential risk of endogeneity bias and measurement error.