Intra- and inter-individual risk attitude heterogeneity and the impact on road travel: evidence from a dynamic procedural model

ABSTRACT

This paper develops a dynamic procedural model to understand the day-to-day evolution of road traffic and risky mode choice behaviour. We embed a modified Bureau of Public Roads function and a queueing model into a dynamic traffic flow model to estimate information on travel time and in-vehicle crowding. Then, the estimated information is fed into a risky mode choice model, with the joint consideration of intra- and inter-individual risk attitude heterogeneity. In order to reflect what may be happening in the real market, we establish a close loop with individuals’ mode choice behaviours shaped by their travel experiences and historical information, the induced impact on traffic flow, and more importantly, the feedback and interplay between them. Our model delivers realistic and robust results, in which risk attitudes play the most prominent role.

KEYWORDS:

• Mode choice
• risk attitude heterogeneity
• traffic flow
• modified BPR function
• in-vehicle crowding

JEL CLASSIFICATION:

• D81
• R41
• E71

Acknowledgments

Discussions with Dr. Alejandro Tirachini are greatly appreciated. We also thank two reviewers for their insightful comments, which have significantly improved this paper.

Disclosure statement

No potential conflict of interest was reported by the authors.

Data availability statement

All the data in this paper have been annotated, and no additional data needs to be provided.