Batley, R.P. (2007) Marginal valuations of travel time and scheduling, and the reliability premium. Transportation Research E, 43 (4). pp. 387-408. ISSN 1366-5545
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Previous works have established synonymity between the notions of uncertainty and unreliability, exploiting this in deriving marginal valuations of travel time and scheduling under uncertainty. Whilst valid for forecasting demand, such valuations fail to illuminate the costs of bearing unreliability - herein referred to as the ‘reliability premium’. The paper derives marginal valuations of travel time and scheduling at the certainty equivalent, showing these to diverge from those under uncertainty. That divergence, which represents the marginal valuation of reliability, raises the possibility of bias should the costs of unreliability not be included in appraisal.
|Copyright, Publisher and Additional Information:||© 2007 Elsevier B.V. This is an author produced version of a paper published in Transportation Research Part E:Logistics and Transportation Review. Uploaded in accordance with the publisher's self-archiving policy.|
|Keywords:||Reliability, valuation, Expected Utility, Risk Aversion, Risk Premium|
|Institution:||The University of Leeds|
|Academic Units:||The University of Leeds > Faculty of Environment (Leeds) > Institute for Transport Studies (Leeds)|
|Depositing User:||Adrian May|
|Date Deposited:||03 Aug 2007|
|Last Modified:||04 Aug 2015 13:49|