Preference heterogeneity and willingness to pay for travel timeReport as inadecuate

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Colaborador: González Marrero, Rosa MarinaOrtúzar Salas, Juan de Dios

???metadata.dc.contributor.other???: Facultad de Economía, Empresa y Turismo

Materias : TurismoViajesConsumidoresPreferenciasModelos matemáticos

Fecha de publicación : 2004

Fecha de depósito: 8-oct-2009

Tipo de documento: Monografía

Author: Amador Morera, Francisco Javier



Económicas y Empresariales Universidad de La Laguna Fac.
Económicas y Empresariales Univ.
de Las Palmas de Gran Canaria Preference heterogeneity and willingness to pay for travel time Francisco Javier Amador Morera* Rosa Marina González Marrero* Juan de Dios Ortúzar** DOCUMENTO DE TRABAJO 2004-12 * Universidad de La Laguna.
Departamento de Análisis Económico. ** Pontificia Universidad Católica de Chile 1 PREFERENCE HETEROGENEITY AND WILLINGNESS TO PAY FOR TRAVEL TIME SAVINGS Francisco Javier Amador Rosa Marina González Instituto Universitario de Desarrollo Regional and Departamento de Análisis Económico Universidad de La Laguna, Tenerife, Spain e-mail:, Juan de Dios Ortúzar Departament of Transport Engineering Pontificia Universidad Católica de Chile, Santiago, Chile e-mail: ABSTRACT We examined different model specifications to detect the presence of preference heterogeneity in a mode choice context.
The specification that worked best allows for both systematic and random variations in tastes.
Using parameters obtained at the individual level through Bayesian inference methods, subjective values of travel time (SVT) and expected individual compensated variation were derived and aggregated to obtain measures of social welfare.
Results suggest that the benefit measures, both at the individual and at the social level, are sensitive to preference heterogeneity assumptions. SVT and welfare changes derived from travel time reductions could be underestimated if the traditional assumption of taste homogeneity is made (we detected differences up to 30% in both types of measures).
We also obtained an empirical value for the error made when evaluating changes in social welfare using an approximation of the expected individual compensated variation (expressed as a function of individual SVT) rather than its exact expression. Key Words: Preference heterogeneity, subjective value of travel time, c...

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