Empirical Identification of Perceived Congestion

Empirical Economics, Forthcoming

26 Pages Posted: 5 Jan 2012 Last revised: 8 Jul 2013

Date Written: January 3, 2012

Abstract

This paper investigates the empirical identification of perceived congestion and mitigating behavior using observational data. Congestion effects are identified using a procedure based upon a non-linear function of the choice attributes combined with an equilibrium condition on the sorting behavior of participants. Results suggest that congestion effects can be identified, under certain assumptions, using only revealed preference data, and that ignoring these effects underestimates the strength of preferences for other attributes. The model is applied to data on rock climbers, and the resulting estimates used to simulate the reopening of a currently closed section of a popular NY rock climbing area and the re-sorting of climbers that would result.

Keywords: Random utility model, Congestion, Travel Cost, Non-market valuation

JEL Classification: C25, C51, Q24, Q26

Suggested Citation

O'Hara, Michael, Empirical Identification of Perceived Congestion (January 3, 2012). Empirical Economics, Forthcoming , Available at SSRN: https://ssrn.com/abstract=1978877 or http://dx.doi.org/10.2139/ssrn.1978877

Michael O'Hara (Contact Author)

St Lawrence University ( email )

Department of Economics
204 hepburn, 23 Romoda Dr.
Canton, NY 13617
United States

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