PRICE AND VALUE OF TIME

Early studies of the value of time seemed to use the terms "value of time" and "price of time" interchangeably to define the value or the shadow price people place on their time. It has been pointed out recently that it may be worthwhile to distinguish between these 2 terms, reserving the term "price" for the amount of money people have to forgo to save 1 unit of time and the term "value" for the amount of money people are willing to pay to save 1 unit of time. It has also been alleged that some of the studies studies claiming to have estimated the value of time have in effect estimated the price of time and that the conventional methods of analysis of binary choice (e.g., discriminant analysis, probit, logit) may be appropriate for the analysis of modal split but are completely inadequate for the estimation of the value of time. These issues are examined in this paper, and a new method is suggested for the estimation of the value of time.

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  • Accession Number: 00081609
  • Record Type: Publication
  • Files: TRIS, TRB, ATRI
  • Created Date: Apr 8 1975 12:00AM