Embedding risk attitude and decision weights in non-linear logit to accommodate time variability in the value of expected travel time savings
In recent years we have seen important extensions of logit models in behavioural research such as incorporation of preference and scale heterogeneity, attribute processing heuristics, and estimation of willingness to pay (WTP) in WTP space. With rare exception, however, a non-linear treatment of the...
| Main Authors: | , , |
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| Format: | Journal Article |
| Published: |
2011
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| Online Access: | http://hdl.handle.net/20.500.11937/32415 |
| _version_ | 1848753657145720832 |
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| author | Hensher, D. Greene, William Li, Z. |
| author_facet | Hensher, D. Greene, William Li, Z. |
| author_sort | Hensher, D. |
| building | Curtin Institutional Repository |
| collection | Online Access |
| description | In recent years we have seen important extensions of logit models in behavioural research such as incorporation of preference and scale heterogeneity, attribute processing heuristics, and estimation of willingness to pay (WTP) in WTP space. With rare exception, however, a non-linear treatment of the parameter set to allow for behavioural reality, such as embedded risk attitude and perceptual conditioning of occurrence probabilities attached to specific attributes, is absent. This is especially relevant to the recent focus in travel behaviour research on identifying the willingness to pay for reduced travel time variability, which is the source of estimates of the value of trip reliability that has been shown to take on an increasingly important role in project appraisal. This paper incorporates, in a generalised non-linear (in parameters) logit model, alternative functional forms for perceptual conditioning (known as probability weighting) and risk attitude in the utility function to account for travel time variability, and then derives an empirical estimate of the willingness to pay for trip time variability-embedded travel time savings as an alternative to separate estimates of time savings and trip time reliability. We illustrate the richness of the approach using a stated choice data set for commuter choice between unlabelled attribute packages. Statistically significant risk attitude parameters and parameters underlying decision weights are estimated for multinomial logit and mixed multinomial logit models, along with values of expected travel time savings. © 2011 Elsevier Ltd. |
| first_indexed | 2025-11-14T08:28:00Z |
| format | Journal Article |
| id | curtin-20.500.11937-32415 |
| institution | Curtin University Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-14T08:28:00Z |
| publishDate | 2011 |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | curtin-20.500.11937-324152017-09-13T15:24:21Z Embedding risk attitude and decision weights in non-linear logit to accommodate time variability in the value of expected travel time savings Hensher, D. Greene, William Li, Z. In recent years we have seen important extensions of logit models in behavioural research such as incorporation of preference and scale heterogeneity, attribute processing heuristics, and estimation of willingness to pay (WTP) in WTP space. With rare exception, however, a non-linear treatment of the parameter set to allow for behavioural reality, such as embedded risk attitude and perceptual conditioning of occurrence probabilities attached to specific attributes, is absent. This is especially relevant to the recent focus in travel behaviour research on identifying the willingness to pay for reduced travel time variability, which is the source of estimates of the value of trip reliability that has been shown to take on an increasingly important role in project appraisal. This paper incorporates, in a generalised non-linear (in parameters) logit model, alternative functional forms for perceptual conditioning (known as probability weighting) and risk attitude in the utility function to account for travel time variability, and then derives an empirical estimate of the willingness to pay for trip time variability-embedded travel time savings as an alternative to separate estimates of time savings and trip time reliability. We illustrate the richness of the approach using a stated choice data set for commuter choice between unlabelled attribute packages. Statistically significant risk attitude parameters and parameters underlying decision weights are estimated for multinomial logit and mixed multinomial logit models, along with values of expected travel time savings. © 2011 Elsevier Ltd. 2011 Journal Article http://hdl.handle.net/20.500.11937/32415 10.1016/j.trb.2011.05.023 restricted |
| spellingShingle | Hensher, D. Greene, William Li, Z. Embedding risk attitude and decision weights in non-linear logit to accommodate time variability in the value of expected travel time savings |
| title | Embedding risk attitude and decision weights in non-linear logit to accommodate time variability in the value of expected travel time savings |
| title_full | Embedding risk attitude and decision weights in non-linear logit to accommodate time variability in the value of expected travel time savings |
| title_fullStr | Embedding risk attitude and decision weights in non-linear logit to accommodate time variability in the value of expected travel time savings |
| title_full_unstemmed | Embedding risk attitude and decision weights in non-linear logit to accommodate time variability in the value of expected travel time savings |
| title_short | Embedding risk attitude and decision weights in non-linear logit to accommodate time variability in the value of expected travel time savings |
| title_sort | embedding risk attitude and decision weights in non-linear logit to accommodate time variability in the value of expected travel time savings |
| url | http://hdl.handle.net/20.500.11937/32415 |