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Originally Posted by MalcolmTucker
Well, if you want to get into the transportation economics of it you have to start with an assumption, in this case I will assume a time value of 25 ¢ a minute. I'll assume the centre of downtown is Knox United Church.
You have to operate at 5 minute frequencies before you can attract half of the walk/transit trips between the centres at close to current fares.
Based on my memory of a 3rd year transportation economics class more than a few years ago.
Given that an hour of transit service has the operational cost of $116.40, and for those three barebones routes you would need 14 buses on the road (with very little room for contingency, turnarounds, breaks), you would need to generate more than 1000 boardings an hour across all service hours to get to 50% farebox ratio. For 7 am - 7 pm it would be $3,5 million a year if ridership goals were met. (this assumes you serve the 14th street and 8th street routes as different routes)
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Well I'd be pretty darn hesitant to present such a crude modelling exercise as even being a little bit conclusive. I know this is just a forum and all and probably just meant as an exercise, but you never know where/who this resonates with.
The time value assumption might be somewhat reasonable. Equating the disutility of the two times, however, not so much. This can easily be 2 or more times more arduous - hence a 1 for 1 time trade off is, well, not so good an assumption. Plus, transit users walk. Nor does this encapsulate the full breadth of modes, and it sure does not account for the other factors that contribute to mode choice, but anyway let's leave it at that. And since I'm already being pedantic, unless you don't give your drivers breaks and have ultra reliability you'll need more than 14 buses.
But to the whole modelling thing:
Quote:
Originally Posted by fusili
Yeah, people definitely don't think or behave this way. Treating travel behavior through an rationale choice theory model is stupid for several reasons. First, rationale choice theory was thoroughly trashed by Daniel Kahneman and Amos Tversky in their studies of decision making behavior. Second, travel decisions are about a lot more than time and money. Let's just stop using completely failed economic models to try and explain, let alone predict anything.
Here is a start: Peter Jones, et al "Understanding Travel Behavior", Aldershot Press (IIRC) 1980.
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Seems someone read The Black Swan?
The value of time used above is actually, with some reasonable approximations, not bad. 0.25 cents/min or $15/hour which is give or take about 50% of prevailing wage. I do believe this is what Transport Canada recommends and numerous other authorities when doing a Cost-Benefit analysis on a project.
I'm not sure I 100% understand what you are criticizing here, but Tversky and Kahneman are very often referenced in transportation demand modelling (I did a search of the name and had about 20 papers come up that I actually have alone). They are also some of the founders of behavioral economics, which is preciously what "good" models use to come up with values of time (although there are other methods). While the above analysis was very parsimonious, you better believe that a similar rationale is indeed used for a lot of analysis, albeit at the aggregate level in most practical applications (of mode choice). The use of this on a disaggregated scale remains largely within academia.
To my understanding they didn't thrash rational choice modelling per se, but showed the irrational and uncertain elements exist. And incidentally, there are extreme value distributions that incorporate individual idiosyncrasies in the known (or rational) attributes. Heck, there's even decision making models to account for variability in unobserved attributes.
So if Malcom's analysis were to use this (but this is a rather large exercise) with that basis, it could account for the gal that walks 1 hour one way when she owns a vehicle and has "free" parking, or the guy that drives 2 blocks to work. In the end, this gets re-aggregated anyway for real decision level data - and that, given that a sample size is large enough quickly causing "convergence to the Gaussian" is what you would plan infrastructure or services around. You don't build HSR for the 6 people willing to pay 500 for a one way ticket.
Transportation is well within a physical realm. Rationality does exist within choices people make pertaining to aspects of it, especially because it's so often repeated and a derived demand anyway. However, what's rational or what isn't is in this case rather subjective and this CAN be accounted for in discrete choice theory. The models are by no means right, and they are not even necessarily useful. In some more extreme cases them being wrong might be impactful.
In most cases they are better than simply estimating a catchment population and applying some a priori mode share to it and hope for the best. I am picking on something that I saw about a month or so ago.
I guess I'm a bit surprised that people don't know the extent of, hmmm, well science that goes on, or at least could behind transportation modelling and therefore policy and infrastructure decisions.
Quote:
Originally Posted by fusili
Agreed, but let's not model behavior on outdated theories of decision making that have no basis in actual psychology or behavior.
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This even pervades into books such as Human Transit (of which I know there are some fans of on here).
I apologize for the story.