UC Irvine Institute of Transportation Studies

We estimate how motorists value their time savings and characterize the degree of heterogeneity in these values by observable traits. We obtain these estimates by analyzing the choices that commuters make in a real market situation, where they are offered a free-flow alternative to congested travel. We do so, however, in an empirical setting where several key observations are missing. To overcome this, we apply Rubin's Multiple Imputation Method to generate consistent estimates and valid statistical inferences. We also compare these estimates to those produced in a "single imputation” scenario to illustrate the potential hazards of single imputation methods when multiple imputation methods are warranted. Our preferred model suggests that the median commuter is willing to pay $30 to save an hour of travel time. However, taking observed heterogeneity into account, median estimates range from $7 to $65 according to varying motorist characteristics.