THE VALUE OF TIME FOR COMMUTING MOTORISTS AS A FUNCTION OF THEIR INCOME LEVEL AND AMOUNT OF TIME SAVED

THE VALUE OF TRAVEL TIME SAVED FOR COMMUTING MOTORISTS IS ESTABLISHED AS A FUNCTION OF THE MOTORIST'S INCOME LEVEL AND AMOUNT OF TIME SAVED. THE RESULTS ARE BASED ON DATA PREVIOUSLY COLLECTED BY STANFORD RESEARCH INSTITUTE AND USED TO ESTIMATE A CONSTANT VALUE OF TIME PER MINUTE SAVED OF $2.82 PER PERSON PER HOUR. THE DATA WERE COLLECTED FOR COMMUTERS WITH A CHOICE BETWEEN A TOLL ROUTE AND FREE ROUTE. IT WAS FOUND THAT THE VALUE OF TIME IS HIGHER FOR MOTORISTS WITH HIGHER INCOMES, E.G., IN THE INCOME RANGE OF $4,000-$15,000 PER YEAR, THE VALUE OF TIME INCREASES AT THE RATE OF APPROXIMATELY $0.20 PER PERSON PER HOUR FOR EACH THOUSAND DOLLARS PER YEAR ($0.50 PER HOUR) INCREASE IN INCOME. FOR VERY SMALL AMOUNTS OF TIME SAVED, THE VALUE OF TIME PER MINUTE IS QUITE LOW. IT INCREASES WITH THE AMOUNT OF TIME SAVED AND THEN DECREASES AGAIN. AS AN EXAMPLE, THE EQUIVALENT HOURLY VALUES FOR A MOTORIST WITH A FAMILY INCOME OF $9,000 PER YEAR ARE AS FOLLOWS: THE FIRST MINUTE SAVED IS $0.79 PER PERSON PER HOUR, THE 14TH MINUTE SAVED IS $3.72 PER PERSON PER HOUR, AND THE 25TH MINUTE SAVED IS $1.26 PER PERSON PER HOUR. THE PAPER INCLUDES A TABLE THAT PROVIDES THE VALUE OF THE AMOUNT OF TIME SAVED AS A FUNCTION OF THE MOTORISTS' INCOME LEVEL AND THE AMOUNT OF TIME SAVED. THESE RESULTS ARE LIMITED TO COMMUTER TRIPS WITH TIME SAVINGS OF NOT MORE THAN 30 MINUTES PER ONE-WAY TRIP. THE VALUE OF TIME IS ESTIMATED FROM MOTORISTS' ROUTE CHOICES AS A FUNCTION OF THE MOTORISTS' CHARACTERISTICS AND THE CHARACTERISTICS OF THE ROUTES. A ROUTE CHOICE MODEL, BASED ON THE LOGIT FUNCTION, IS USED TO PREDICT THE MOTORISTS' ROUTE CHOICES BETWEEN THE ALTERNATIVE TOLL AND FREE ROADS. THE COEFFICIENTS OF THE DISCRIMINANT FUNCTION IN THIS MODEL ARE THEN STATISTICALLY ESTIMATED BY FINDING THEIR MAXIMUM LIKEIHOOD ESTIMATES. FROM THESE ESTIMATES THE INDIFFERENCE CURVE BETWEEN TOLL PER PERSON AND TRAVEL TIME SAVED IS DETERMINED, THE SLOPE OF WHICH YIELDS THE DESIRED VALUE OF TIME FUNCTION. /AUTHOR/

  • Digital Copy:
  • Supplemental Notes:
    • Paper sponsored by Committee on Highway Engineering Economy and presented at the 49th Annual Meeting.
  • Authors:
    • Thomas, Thomas C
    • Thompson, Gordon I
  • Discussers:
    • Lisco, Thomas E
  • Publication Date: 1970

Media Info

  • Media Type: Print
  • Features: Figures; References; Tables;
  • Pagination: pp 1-19
  • Monograph Title: Costs and benefits of transportation planning
  • Serial:

Subject/Index Terms

Filing Info

  • Accession Number: 00201927
  • Record Type: Publication
  • Files: TRIS, TRB
  • Created Date: Nov 9 1970 12:00AM