Choice of Season Cards in Public Transport: A Study of a Stated Preference Experiment

Trasporti Europei/European Transport, Vol. 40, pp. 4-32, 2009

Posted: 24 Sep 2009 Last revised: 26 May 2010

See all articles by Vincent A.C. van den Berg

Vincent A.C. van den Berg

VU University Amsterdam; Tinbergen Institute

Eric Kroes

affiliation not provided to SSRN

Erik T. Verhoef

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

Date Written: February 1, 2009

Abstract

This paper studies a Stated Preference (SP) experiment on the choice of type of (Rail) season card, conducted among current Dutch Railways season cardholders. They were asked to choose from the following three alternatives: (1) an unrestricted season card, (2) a cheaper season card with peak travel and travel frequency restrictions, and (3) not buying a season card. Multinomial logit (MNL), nested logit and mixed logit models are used to analyse their choices. It is found that MNL underestimates the price sensitivities (as measured by the price elasticities) of the respondents and overestimates their Willingness-to-Pay (WTP) for reductions in the restrictions. The mixed logit estimation shows that there are (unobserved) differences in the marginal utilities of the price of the card (response heterogeneity), and the utility of owning a season card (preference heterogeneity). In the Netherlands a large share of commuters and business travellers receive travel cost compensation from their employer. However, empirical studies often do not control for the effect of travel cost compensation. We find, as expected, that travel cost compensation has a large impact on the price sensitivities and choices of the respondents.

Keywords: SP experiment, Rail season card, Travel cost compensation, Public transport demand

Suggested Citation

van den Berg, Vincent A.C. and Kroes, Eric and Verhoef, Erik T., Choice of Season Cards in Public Transport: A Study of a Stated Preference Experiment (February 1, 2009). Trasporti Europei/European Transport, Vol. 40, pp. 4-32, 2009 , Available at SSRN: https://ssrn.com/abstract=1477998

Vincent A.C. van den Berg (Contact Author)

VU University Amsterdam ( email )

De Boelelaan 1105
Amsterdam, ND North Holland 1081 HV
Netherlands

HOME PAGE: http://www.feweb.vu.nl/nl/afdelingen-en-instituten/spatial-economics/staff/v-berg/index.asp

Tinbergen Institute ( email )

Gustav Mahlerplein 117
Amsterdam, 1082 MS
Netherlands

Eric Kroes

affiliation not provided to SSRN ( email )

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

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