State-dependent congestion pricing with reference-dependent preferences
Demand and capacity fluctuations are common for roads and other congestible facilities. With ongoing advances in pricing technology and ways of communicating information to prospective users, state-dependent congestion pricing is becoming practical. But it is still rare or nonexistent in many potential applications. One explanation is that people dislike uncertainty about how much they will pay. To explore this idea, a model of reference-dependent preferences is developed based on Koszegi and Rabin (2006). Using a facility yields an "intrinsic" utility and a "gain-loss" utility measured relative to the probability distribution over states of utility outcomes. Two types of preferences are analyzed: bundled preferences in which gains and losses are perceived for overall utility, and unbundled preferences in which gains and losses are perceived separately for the toll and other determinants of utility.
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Availability:
- Find a library where document is available. Order URL: http://worldcat.org/issn/01912615
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Supplemental Notes:
- Abstract reprinted with permission from Elsevier.
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Authors:
- Lindsey, Robin
- Publication Date: 2011-12
Language
- English
Media Info
- Media Type: Print
- Features: Appendices; Figures; References; Tables;
- Pagination: pp 1501-1526
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Serial:
- Transportation Research Part B: Methodological
- Volume: 45
- Issue Number: 10
- Publisher: Elsevier
- ISSN: 0191-2615
- Serial URL: http://www.sciencedirect.com/science/journal/01912615
Subject/Index Terms
- TRT Terms: Congestion pricing; Consumer preferences; Mathematical models; Sensitivity; Tolls; Traffic characteristics; Utility theory
- Subject Areas: Finance; Highways; Operations and Traffic Management; Planning and Forecasting; I10: Economics and Administration; I73: Traffic Control;
Filing Info
- Accession Number: 01359506
- Record Type: Publication
- Files: TRIS, ATRI
- Created Date: Dec 22 2011 2:08PM