The Distribution of the Willingness to Pay for a Reliable Journey

The willingness to pay (WTP) for improved travel conditions is a key term in transport economics. Traditionally is has been common to assume that the WTP only varies according to observed attributes of the travelers. In recent years there has been growing interest in accounting for random variation of preferences across the population by estimating the entire distribution of the WTP. This distribution is often derived from Mixed Logit models estimated by maximum simulated likelihood, but such estimates depend not only on the input data but also on the specification of the model. The current paper describes a simple nonparametric experiment that examines what information about the WTP truly exists in the data used for modeling. An attempt is made to estimate the distribution of the WTP directly from the results of a stated preference survey, through analysis of the range of values accepted or rejected by each respondent. It is found that the amount of information that the survey data contain is smaller that expected. It is also found that the ability to identify a major share of the distribution strongly depends on the dimensionality of stated preference experiment.

Language

  • English

Media Info

  • Media Type: CD-ROM
  • Features: Figures; References;
  • Pagination: 15p
  • Monograph Title: TRB 86th Annual Meeting Compendium of Papers CD-ROM

Subject/Index Terms

Filing Info

  • Accession Number: 01047550
  • Record Type: Publication
  • Report/Paper Numbers: 07-0068
  • Files: TRIS, TRB
  • Created Date: Feb 8 2007 4:37PM