Confidence intervals of willingness-to-pay for random coefficient logit models

Bliemer, MCJ; Rose, JM

Confidence intervals of willingness-to-pay for random coefficient logit models

Bliemer, MCJ Rose, JM

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Publication Type:: Journal Article
Citation:: Transportation Research Part B: Methodological, 2013, 58 pp. 199 - 214
Issue Date:: 2013-12-01

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Field	Value	Language
dc.contributor.author	Bliemer, MCJ	en_US
dc.contributor.author	Rose, JM	en_US
dc.date.issued	2013-12-01	en_US
dc.identifier.citation	Transportation Research Part B: Methodological, 2013, 58 pp. 199 - 214	en_US
dc.identifier.issn	0191-2615	en_US
dc.identifier.uri	http://hdl.handle.net/10453/117214
dc.description.abstract	© 2013 Random coefficient logit (RCL) models containing random parameters are increasingly used for modelling travel choices. Willingness-to-pay (WTP) measures, such as the value of travel time savings (VTTS) are, in the case of RCL models estimated in preference space, ratios of random parameters. In this paper we apply the Delta method to compute the confidence intervals of such WTP measures, taking into account the variance–covariance matrix of the estimates of the distributional parameters. The same Delta method can be applied when the model is estimated in WTP space. Compared to simulation methods such as proposed by Krinsky and Robb, the Delta method is able to avoid most of the simulations by deriving partly analytical expressions for the standard errors. Examples of such computations are shown for different combinations of random distributions.	en_US
dc.relation.ispartof	Transportation Research Part B: Methodological	en_US
dc.relation.isbasedon	10.1016/j.trb.2013.09.010	en_US
dc.subject.classification	Logistics & Transportation	en_US
dc.title	Confidence intervals of willingness-to-pay for random coefficient logit models	en_US
dc.type	Journal Article
utslib.citation.volume	58	en_US
utslib.for	0102 Applied Mathematics	en_US
utslib.for	1507 Transportation and Freight Services	en_US
utslib.for	0905 Civil Engineering	en_US
pubs.embargo.period	Not known	en_US
pubs.organisational-group	/University of Technology Sydney
pubs.organisational-group	/University of Technology Sydney/Faculty of Business
pubs.organisational-group	/University of Technology Sydney/Strength - BIDA - Business Intelligence and Data Analytics
utslib.copyright.status	closed_access
pubs.publication-status	Published	en_US
pubs.volume	58	en_US

Abstract:

© 2013 Random coefficient logit (RCL) models containing random parameters are increasingly used for modelling travel choices. Willingness-to-pay (WTP) measures, such as the value of travel time savings (VTTS) are, in the case of RCL models estimated in preference space, ratios of random parameters. In this paper we apply the Delta method to compute the confidence intervals of such WTP measures, taking into account the variance–covariance matrix of the estimates of the distributional parameters. The same Delta method can be applied when the model is estimated in WTP space. Compared to simulation methods such as proposed by Krinsky and Robb, the Delta method is able to avoid most of the simulations by deriving partly analytical expressions for the standard errors. Examples of such computations are shown for different combinations of random distributions.

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http://hdl.handle.net/10453/117214