Accession Number : AD0725480

Title :   The Value of Time in Air Travel: Theory and Evidence,

Corporate Author : CENTER FOR NAVAL ANALYSES ARLINGTON VA INST OF NAVAL STUDIES

Personal Author(s) : De Vany,Arthur S.

Report Date : APR 1971

Pagination or Media Count : 46

Abstract : The roles of time and money cost in the demand for air travel are analyzed. The first step is to construct the theory of consumer demand under a time constraint and to deduce its theorems. Then these theorems are applied to air travel through use of a total price demand function. This analysis considers the effects of fare, trip time, airport delay, schedule frequency, trip distance, traveler's wage rates, and non-wage income on the demand for air travel. Many results concerning elasticities are obtained, including a necessary relationship between the time, price, and total price elasticities of demand. Tests of the theorems are performed, the various elasticities are estimates, and the relationship between the elasticities required by the theory is used to obtain an estimate of the value of time in air travel. (Author)

Descriptors :   (*AIR TRANSPORTATION, COSTS), (*OPERATIONS RESEARCH, AIR TRANSPORTATION), MATHEMATICAL MODELS, PARTIAL DIFFERENTIAL EQUATIONS, NUMERICAL ANALYSIS

Subject Categories : Operations Research

Distribution Statement : APPROVED FOR PUBLIC RELEASE