Measuring user benefits of changes in the transport system when traveler awareness is limited
economics - benefits
awareness, bounded rationality, user benefits, consumer surplus, logsum
This paper derives and illustrates measures for the ex ante evaluation of user benefits associated with improvements in the transport system. In contrast with conventional analyses, we assume that awareness among travelers of changes in the transport system is limited and grows over time. Specifically, we postulate that each day (trip) provides travelers with an opportunity to learn about changes that occurred recently in the transport system. This learning process may involve learning through direct experience and indirect learning through for example social networks or information provision. Our measure of user benefits incorporates the conventional logsum-measure as a special case (when full awareness is assumed) and has a closed form solution under reasonable error term assumptions. A numerical illustration provides a first sign of face validity. We derive and discuss a number of practical implications, and discuss possible model extensions.
Permission to publish abstract given by Elsevier, copyright remains with them.
Chorus, C.G., & Timmermans, H.J. (2009). Measuring user benefits of changes in the transport system when traveler awareness is limited. Transportation Research Part A, 43(5), 536-547.