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ALTERNATIVE METHODS OF ELICITING INDIVIDUAL WILLINGNESS TO PAY FOR TRAVEL TIME SAVINGS: A PILOT STUDY

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Date Issued:
2008
Abstract/Description:
How does one estimate the value of an individual's time? One possible way is to estimate how much a person is willing to pay for time savings. The majority of transportation studies have used stated preference surveys to estimate an individual's willingness to pay (WTP) for travel time savings. However, stated preferences approaches are subject to hypothetical bias since they elicit WTP for hypothetical outcomes instead of real outcomes. One study used a revealed preference approach in a natural experiment to elicit WTP for travel time savings but the data was for a non-recurring event, which was not replicable. The purpose of this pilot study is to explore new methods, using procedures from a replicable field experiment, to elicit individual WTP for travel time savings. By using a revealed preference approach in an experimental setting, we address the legitimate concern over hypothetical bias while allowing the experimental methods and resulting data set to be replicated in other settings. The results show that the proposed field experiment is feasible, and that a sample of college students places a value of $22.43 on an hour of time. This estimated value is significantly greater than zero. We also find that individual WTP for travel time savings is significantly larger than the average wage rate, and that this WTP varies significantly across certain demographics. We conclude by reviewing the simplifying assumptions made within the study and offer extensions of how our data set can be replicated in the future for more complete analysis.
Title: ALTERNATIVE METHODS OF ELICITING INDIVIDUAL WILLINGNESS TO PAY FOR TRAVEL TIME SAVINGS: A PILOT STUDY.
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Name(s): LASCELLES, ASHLEY, Author
Harrison, Glenn , Committee Chair
University of Central Florida, Degree Grantor
Type of Resource: text
Date Issued: 2008
Publisher: University of Central Florida
Language(s): English
Abstract/Description: How does one estimate the value of an individual's time? One possible way is to estimate how much a person is willing to pay for time savings. The majority of transportation studies have used stated preference surveys to estimate an individual's willingness to pay (WTP) for travel time savings. However, stated preferences approaches are subject to hypothetical bias since they elicit WTP for hypothetical outcomes instead of real outcomes. One study used a revealed preference approach in a natural experiment to elicit WTP for travel time savings but the data was for a non-recurring event, which was not replicable. The purpose of this pilot study is to explore new methods, using procedures from a replicable field experiment, to elicit individual WTP for travel time savings. By using a revealed preference approach in an experimental setting, we address the legitimate concern over hypothetical bias while allowing the experimental methods and resulting data set to be replicated in other settings. The results show that the proposed field experiment is feasible, and that a sample of college students places a value of $22.43 on an hour of time. This estimated value is significantly greater than zero. We also find that individual WTP for travel time savings is significantly larger than the average wage rate, and that this WTP varies significantly across certain demographics. We conclude by reviewing the simplifying assumptions made within the study and offer extensions of how our data set can be replicated in the future for more complete analysis.
Identifier: CFE0002184 (IID), ucf:47911 (fedora)
Note(s): 2008-05-01
M.S.
Business Administration, Department of Economics
Masters
This record was generated from author submitted information.
Subject(s): Willingness to Pay
Transportation
Value Elicitation
Persistent Link to This Record: http://purl.flvc.org/ucf/fd/CFE0002184
Restrictions on Access: public
Host Institution: UCF

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