The impact of travel time variability and travelers' risk attitudes on the values of time and reliability

- Develops a microeconomic model of transport mode choice using the Bernoulli approach.
- Derives analytical measures of the VOT and VOR.
- Demonstrates how the VOT and VOR depend on travelers risk attitudes.
- Demonstrates how the VOT and VOR are affected by changes in the distribution of travel time.
- Provides testable empirical predictions on the shape of the VOT and VOR.

In this paper, we derive implementable measures of travelers' willingness to pay to save travel time (vot) and to improve the reliability ( vor) of a given trip. We set out a simple microeconomic model of transport mode choice in which each trip is fully characterized by its price and the statistical distribution of its random travel time, assuming that travelers have expected utility preferences over the latter. We then explore how the vot and vor are affected by the statistical distribution of travel time and by travelers' preferences towards travel time variability.