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The trade off between time and money: is there a difference between real and hypothetical choices?
Swedish National Road and Transport Research Institute, Society, environment and transport, Transport economics Stockholm.ORCID iD: 0000-0002-4722-8788
2007 (English)Report (Other academic)
Abstract [en]

This paper reports the results from one experiment and one quasi-experiment used to investigate the potential problem of "hypothetical bias" in surveys involving an individual’s valuation of time. The experiment compares hypothetical and real choices regarding an offer to participate in a survey in exchange for money. The quasi-experiment compares hypothetical and real choices regarding two bus journeys, one fast and expensive and the other slow and cheap. In both of these experiments, real choices differ significantly from hypothetical ones. The paper estimates parametric distributions of the value of time by applying the general method of moments (GMM) estimator. Since the samples are relatively small a parametric bootstrap is used to obtain asymptotic refinement of statistical tests. The results in the experiment as well as in the quasi-experiment suggest a value of time which is higher when the choice is for real than when the choice is hypothetical. Assuming that the value of time distribution is exponential, real choices produce a mean value of time twice as large as the corresponding hypothetical value.

Place, publisher, year, edition, pages
Stockholm: Statens väg- och transportforskningsinstitut, 2007. , p. 34
Series
CTS Working Paper ; 2007:3
Keywords [en]
Value analysis, Journey time, Bus, Choice, Stated preference, Bias, Statistical analysis, Economics
National Category
Economics
Research subject
Road: Transport, society, policy and planning, Road: Public transport
Identifiers
URN: urn:nbn:se:vti:diva-676OAI: oai:DiVA.org:vti-676DiVA, id: diva2:669376
Available from: 2013-12-03 Created: 2013-12-03 Last updated: 2022-10-20Bibliographically approved

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Isacsson, Gunnar

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CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf