The value of travel time variance

Mogens Fosgerau, Leonid Engelson

    Research output: Contribution to journalJournal articleResearchpeer-review

    Abstract

    This paper considers the value of travel time variability under scheduling preferences that are defined in terms of linearly time varying utility rates associated with being at the origin and at the destination. The main result is a simple expression for the value of travel time variability that does not depend on the shape of the travel time distribution. The related measure of travel time variability is the variance of travel time. These conclusions apply equally to travellers who can freely choose departure time and to travellers who use a scheduled service with fixed headway. Depending on parameters, travellers may be risk averse or risk seeking and the value of travel time may increase or decrease in the mean travel time.
    Original languageEnglish
    JournalTransportation Research. Part B: Methodological
    Volume45
    Issue number1
    Pages (from-to)1-8
    ISSN0191-2615
    DOIs
    Publication statusPublished - 2011

    Cite this