What is the marginal disutility of travel time

Reference no: EM133425768

In modeling subway choices, transportation researchers often use a nonlinear specification of utility of a given alternative given by:

uij = β_T[T_ij + (T_ij * D_ij)μ_TD + (Tij * Dij * S_ij)μ_TDS] + εij

where T is travel time in minutes, D is average standee passenger density of a subway car in pax/m2, and S is a binary indicator of whether passenger i is standing (S = 1) or not while traveling on alternative j.

Q1. What is the marginal disutility of travel time for someone who is the only rider on a subway car? (Hint: use parameter(s) of the model in your discussion - also, why is it called a disutility?)

Q2. What is the general expression of the marginal disutility of travel time? Discuss.

Q3. In transportation economics, the parameter μ_TD is called a crowding multiplier of the valuation of travel time. Explain the intuition of the interpretation of μ_TD.

What sign and magnitude would you expect for μ_TD? Discuss.

Q4. What would be the behavioral interpretation and expected sign of the parameter μ_TDS?

Q5. What is the marginal rate of substitution between travel time at technical capacity (i.e., Dj = 6 pax/m2) and travel time at Dj = 1 pax/m2? What is the marginal rate of substitution between an additional minute of travel time at technical capacity between traveling standing versus sitting?

Q6. Consider a rider choosing between the express and local trains in Manhattan.

The local train stops at every station, whereas the express train is faster as it only stops at a subset of stations. At some times of the day the local train has lower density of passengers than the express train. If ε iid ∼ EV 1(0, 1), write the likelihood function for a sample of size N of riders making this decision between the express and local trains. Consider the utility specification you have been discussing above.

Reference no: EM133425768

Questions Cloud

Describe an instance when you sent a communication : Describe an instance when you sent a communication and it did not have the effect you thought it would. What could you have done differently? What might you do

Which one from each reading that is most pertinent : describing why it's selected, and 3) citing at least three examples from a professional experiences where the factor and the barrier were present in some

Develop a inventory plan by adjusting production : Develop a inventory plan by adjusting production to ensure that you maintain the minmum inventory, not exceeding the maximum and also ensuring good production

What is the frame that denny is operating within : What do you think is the issue at hand? What is the frame that Denny is operating within? As a result, what option has he determined needs to be taken?

What is the marginal disutility of travel time : What is the marginal disutility of travel time for someone who is the only rider on a subway car? (Hint: use parameter(s) of the model in your discussion

How would you describes the student organization : What student organization would you choose and How would you describes the student organization, also your top 3 reasons why students should join

Derive an expression for the marginal rate : What are the expected signs for the ß parameters? How many ?j parameters can one estimate if there are J alternatives

Describe the elements of the acronym stay lit : Describe the elements of the acronym Stay LIT as described in the "Lost In Translation: Cross Cultural Communication" video

How do the authors define vertical foreclosure : How do the authors define vertical foreclosure and Do you see any evidence that the mergers studied in D-S solve a double-markup problem

User Account

All Pages