Using prospect theory to investigate the low marginal value of travel time for small time changes
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Using prospect theory to investigate the low marginal value of travel time for small time changes. / Hjorth, Katrine; Fosgerau, Mogens.
I: Transportation Research Part B: Methodological, Bind 46, Nr. 8, 09.2012, s. 917-932.Publikation: Bidrag til tidsskrift › Tidsskriftartikel › Forskning › fagfællebedømt
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TY - JOUR
T1 - Using prospect theory to investigate the low marginal value of travel time for small time changes
AU - Hjorth, Katrine
AU - Fosgerau, Mogens
PY - 2012/9
Y1 - 2012/9
N2 - A common finding in stated preference studies that measure the value of travel time (VTT) is that the measured VTT increases with the size of the time change considered, in conflict with standard neoclassical economic theory. We present a new test of a possible explanation for the phenomenon that builds on the diminishing or constant sensitivity of the value functions in prospect theory.We use stated preference data with trade-offs between travel time and money that provide separate identification of the degrees of diminishing sensitivity for time and money gains and losses. This enables us to test and potentially falsify the prospect theory explanation. We conclude that prospect theory remains a potential explanation of the phenomenon.
AB - A common finding in stated preference studies that measure the value of travel time (VTT) is that the measured VTT increases with the size of the time change considered, in conflict with standard neoclassical economic theory. We present a new test of a possible explanation for the phenomenon that builds on the diminishing or constant sensitivity of the value functions in prospect theory.We use stated preference data with trade-offs between travel time and money that provide separate identification of the degrees of diminishing sensitivity for time and money gains and losses. This enables us to test and potentially falsify the prospect theory explanation. We conclude that prospect theory remains a potential explanation of the phenomenon.
KW - Prospect theory
KW - Small time savings
KW - Stated preference data
KW - Value of travel time
UR - http://www.scopus.com/inward/record.url?scp=84864473985&partnerID=8YFLogxK
U2 - 10.1016/j.trb.2012.04.001
DO - 10.1016/j.trb.2012.04.001
M3 - Journal article
AN - SCOPUS:84864473985
VL - 46
SP - 917
EP - 932
JO - Transportation Research. Part B: Methodological
JF - Transportation Research. Part B: Methodological
SN - 0191-2615
IS - 8
ER -
ID: 181873369