Rong Zhang, Department of Spatial Economics,
Free University Amsterdam, Amsterdam, The Netherlands, Piet Rietveld, Free University, Amsterdam.
Tinbergen Institute, Amsterdam., Amsterdam, The Netherlands, Erik T. Verhoef, Free University Amsterdam, Amsterdam, The Netherlands
How do people perceive the benefits of road traffic information? An experiment study (assigned to theme
This paper presents the results of an experiment carried out in a travel simulator laboratory. In the experiment, the participants decide whether to buy information that removes travel time uncertainty at a certain price, when facing a route choice between an uncertain and a certain route. The certain route is longer than or equal to the uncertain route in terms of average travel time. The experiment aims at gaining knowledge on how people evaluate information. The experiment uses a hybrid, experimental approach that in some sense combines characteristics of SP (Stated Preference) and RP (Revealed Preference) methods. That is, the participants face the consequences of their own choices through financial rewards that are based on their performance in the experiment, while the environment of the experiment remains hypothetical. Because the pay-offs are determined by the researchers carrying out the experiment, it does not represent a true RP study. Data obtained from the pilot shows that when the two routes are comparable in average travel time, the participants tend to prefer the certain one. However, when the mean travel times differ, a larger proportion of the participants become risk-neutral: they choose the uncertain but shorter route. Regarding the information purchasing behavior, the data suggests that the lower information price is relative to expected value of information, the more are people willing to pay for information. A mixed logit model estimated reveals that the modeling structure we have proposed is well able to describe the information-purchasing behavior. Preliminary estimates show that information price has significant and negative influences on people¡¯s utilities from route choices.
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