# 13-075/VIII (2013-05-28; 2015-04-30)

Author(s)
Paul Koster, VU University Amsterdam; Hans Koster, VU University Amsterdam
Keywords:
local maximum likelihood, heterogeneity, scheduling, semiparametric Logit, latent class, normalised entropy criterion, value of time, value of reliability
JEL codes:
R4, C14, C23

This discussion paper led to a publication in 'Transportation Research Part B: Methodological'

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We employ a semi-parametric estimation approach to analyse observed and unobserved heterogeneity in the value of savings in travel time and schedule delay. Our econometric
approach allows for the estimation of unobserved and observed heterogeneity in preferences in a flexible way, meaning that we do not put any structure on how individual characteristics (such as income and age) relate to the value of savings in travel time and schedule delay. Using data from a stated choice experiment, we illustrate the estimation approach and find that there is substantial heterogeneity in the value of savings in travel time and schedule delay. For our data, we find that unobserved heterogeneity is more important than heterogeneity related to individual characteristics.