A critical appraisal of the use of simple time-money trade-offs for appraisal value of travel time measures

Hess, Stephane; Daly, Andrew; Börjesson, Maria

doi:10.1007/s11116-020-10097-w

Cited by 14 publications

(7 citation statements)

References 49 publications

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“…One exception is Peer et al (2014), who do not find evidence for time inconsistency, but this might be due to other confounding factors that drive their SP and RP estimates apart. Our results question the common use of retrospective reference points in SP surveys, and hence add to the recently emerging criticism of their usage: Hultkrantz and Savsin (2018) found that adding a reference point does not reduce the hypothetical bias; Peer and Börjesson (2018) show that reference points may not be stable, and the derived preferences may thus not correspond to long-term stable preferences required for welfare analysis; similarly, Hess et al (2020) argue that reference points may induce short-run re-scheduling and loss-aversion.…”

Section: Introductioncontrasting

confidence: 46%

Can time-inconsistent preferences explain hypothetical biases?

Krčál

Peer

Staněk

2021

Economics of Transportation

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We investigate whether the value of time (VOT) depends on when the corresponding preferences are measured: in advance, just before, or after the time period for which the time preferences are being evaluated. We find that the VOT is highest when elicited just before the time period. This is an indication of the VOT being affected by time-inconsistent, and more specifically, present-biased preferences. We argue that this result may explain why time valuations based on stated preference (SP) data are typically found to be lower than those based on revealed preference (RP) data: most RP surveys evaluate the preferences of respondents close to the time period for which the preferences are being measured, whereas the time instances for which preferences are evaluated in SP surveys tend to be more abstract, or referencing past or future time periods.

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Section: Introductioncontrasting

confidence: 46%

Can time-inconsistent preferences explain hypothetical biases?

Krčál

Peer

Staněk

2021

Economics of Transportation

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“…While previous studies have often looked separately at different dimensions of choice or different journey characteristics, this reliance on simple survey designs has received growing criticism of late (cf. Hess et al, 2020). With this in mind, we sought to collect all relevant behaviour effects in a single experiment where car drivers and passengers were presented with options reflecting route options (tolled and untolled routes) and departure time options (peak and off-peak).…”

Section: 2mentioning

confidence: 99%

“…With ongoing discussions about whether such reference dependence effects are in non-trivial part a design artefact (cf. Hess et al, 2020) and also the resulting difficulties in determining a reference free VTT (cf. Hess et al, 2017), this finding was not unwelcome in an applied real world study.…”

Section: Model Development Processmentioning

confidence: 99%

Using state-of-the-art models in applied work: Travellers willingness to pay for a toll tunnel in Copenhagen

Hess

Daly

et al. 2021

Transportation Research Part A: Policy and Practice

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“…The use of simple trade-offs has received Tjiong, Hess, Dekker, and Ojeda-Cabral 5 increasing criticism as the valuations from more complex SC designs are deemed more reliable. More complex choices are also thought to be more comprehensible to respondents (11).…”

Section: Monte Carlo Simulationsmentioning

confidence: 99%

“…The use of simple trade-offs has received increasing criticism as the valuations from more complex SC designs are deemed more reliable. More complex choices are also thought to be more comprehensible to respondents ( 11 ). Nevertheless, such simple trade-offs are useful in this study to enable the disentangling of the confounding effects, which is more difficult under the presence of more than two attributes.…”

Section: Empirical Setupmentioning

confidence: 99%

Impact of Travel Time Constraints on Taste Heterogeneity and Non-Linearity in Simple Time–Cost Trade-Offs

Tjiong

Hess

Dekker

et al. 2018

Transportation Research Record: Journal of the Transportation R

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Discrete choice models are a key technique for estimating the value of travel time (VTT). Often, stated choice data are used in which respondents are presented with trade-offs between travel time and travel cost and possibly additional attributes. There is a clear possibility that some respondents experience time constraints, leaving some of the presented options unfeasible. A model not incorporating information on these constraints would explain choices for faster and more expensive options as an indication that those respondents have a higher value of travel time when in reality they may be forced to select the more expensive option as a result of their personal constraints. We put forward the hypothesis that this can have major impacts on findings in terms of heterogeneity in VTT measures. This paper examines via simulation the bias in VTT estimates and especially preference heterogeneity when such constraints are (not) accounted for. We provide empirical evidence that preference heterogeneity is confounded with the travel budget impact on the availabilities of alternatives, and show that there is a risk of producing biased estimates for appraisal VTT if studies do not explicitly model choice set formation. The inclusion of an opt-out alternative could be an effective measure to reduce the bias. This paper also explores the potential use of non-linear functional forms to capture the time budget impacts.

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A critical appraisal of the use of simple time-money trade-offs for appraisal value of travel time measures

Abstract: This is a repository copy of A critical appraisal of the use of simple time-money trade-offs for appraisal value of travel time measures.

Cited by 14 publications

References 49 publications

Can time-inconsistent preferences explain hypothetical biases?

Can time-inconsistent preferences explain hypothetical biases?

Using state-of-the-art models in applied work: Travellers willingness to pay for a toll tunnel in Copenhagen

Impact of Travel Time Constraints on Taste Heterogeneity and Non-Linearity in Simple Time–Cost Trade-Offs

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