The aim of this study is to develop a travel cost function that not only considers the distance between origin and destination, but also includes the characteristics of alternative travel routes, such as status of infrastructure, frequency of congestion, and the taste for variety of the traveller, which may lead to an increase in welfare as the number of alternative routes increases. The theoretical definition of travel cost is made up of two cost components: the expected variable cost component (which accounts for the cost of travelling on a specific route) and the network cost (which accounts for the sacrifices inherent in alternative possibilities of travelling in a specific network). The analysis of the model shows that an increase in the unitary travel price generates a proportional increase in the number of alternative routes. Thus, our definition of the total travel cost demonstrates that, due to their taste for variety, travellers are willing to pay higher travel costs if more alternative network routes are offered. (Author/publisher)
Samenvatting