Citation

Huang C, Burris M, Shaw WD. Transp. Lett. 2017; 9(5): 276-295.

Copyright

(Copyright © 2017, Maney Publishing, Publisher Informa - Taylor and Francis Group)

DOI

10.1080/19427867.2016.1204811

PMID

unavailable

Abstract

A rapidly exploding body of recent literature recognizes the limitations of modeling travel behavior with the assumption that the traveler faces no risk. More recent models incorporate risk and can be based on expected utility theory (EUT). However, violations of key assumptions of EUT have led to the development of non-EUT models of behavior. This study focuses on managed lane (ML) choice and examines differences in the value of travel time under cumulative prospect theory (CPT) specification versus the EUT. Travelers in our sample are more risk-averse when faced with possibly being late than they are with respect to potential savings in travel time in general. Travelers exhibit optimism (underweight the probability) when the chances of facing a longer travel time are high. The CPT models performed better than traditional models and thus, may prove to be an important tool when considering the benefits of MLs.

Language: en

Keywords

cumulative prospect theory; Expected utility theory; managed lanes; probability weighting; risk attitude