Long-Run vs. Short-Run Perspectives on Consumer Scheduling: Evidence from a Revealed-Preference Experiment Among Peak-Hour Road Commuters

Tinbergen Institute Discussion Paper No. 11-181/3

34 Pages Posted: 23 Dec 2011

See all articles by Stefanie Peer

Stefanie Peer

Vrije Universiteit Amsterdam, School of Business and Economics

Erik T. Verhoef

VU University Amsterdam - Department of Spatial Economics; Vrije Universiteit Amsterdam, School of Business and Economics; Tinbergen Institute

Jasper Knockaert

affiliation not provided to SSRN

Paul Koster

Tinbergen Institute

Yin‐Yen Tseng

VU University Amsterdam - Department of Spatial Economics

Date Written: December 22, 2011

Abstract

Theoretical and empirical studies of consumer scheduling behavior in commuting, and the associated valuation of time and schedule delays usually ignore that consumers have more exibility to adjust their schedule in the longer run than in the shorter run, implying that also these valuations may differ. We propose a framework that does distinguish between a long-run choice of routines over the day, based on longrun expectations of travel times, and a short-run choice of departure time, taking these routines as given and using more precise expectations of travel time that can be formed when getting closer to the moment of traveling. Our empirical results show that significant differences exist in the valuation of time and of schedule delays between the long-run and the short-run model. Travel time is valued higher in the long-run model, as changes in travel time are more permanent and can therefore be exploited better through the rescheduling of routines. Schedule delays are valued higher in the short-run model, since scheduling restrictions are typically more binding in the short-run.

Keywords: scheduling model, travel routines, departure time choices, long-run vs. short-run, information, travel time expectations, revealed preference data, reward experiment

JEL Classification: C25, D03, D80, R48

Suggested Citation

Peer, Stefanie and Verhoef, Erik T. and Knockaert, Jasper and Koster, Paul and Tseng, Yin-Yen, Long-Run vs. Short-Run Perspectives on Consumer Scheduling: Evidence from a Revealed-Preference Experiment Among Peak-Hour Road Commuters (December 22, 2011). Tinbergen Institute Discussion Paper No. 11-181/3, Available at SSRN: https://ssrn.com/abstract=1976170 or http://dx.doi.org/10.2139/ssrn.1976170

Stefanie Peer (Contact Author)

Vrije Universiteit Amsterdam, School of Business and Economics ( email )

De Boelelaan 1105
Amsterdam, 1081HV
Netherlands

Erik T. Verhoef

VU University Amsterdam - Department of Spatial Economics ( email )

De Boelelaan 1105
1081HV Amsterdam
Netherlands
+31 020 4446094 (Phone)
+31 020 4446004 (Fax)

Vrije Universiteit Amsterdam, School of Business and Economics ( email )

De Boelelaan 1105
Amsterdam, 1081HV
Netherlands

Tinbergen Institute ( email )

Gustav Mahlerplein 117
Amsterdam, 1082 MS
Netherlands

Jasper Knockaert

affiliation not provided to SSRN

Paul Koster

Tinbergen Institute ( email )

Burg. Oudlaan 50
Rotterdam, 3062 PA
Netherlands

Yin-Yen Tseng

VU University Amsterdam - Department of Spatial Economics ( email )

De Boelelaan 1105
1081HV Amsterdam
Netherlands

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